Only 1 NHCE

[Logan401]

What if there are 5 HCEs, and only one NHCE in a plan & you would like to use restructuring rules?

Can this be done?

I believe that each employee can only be considered in one component.

How does that work if there is only one NHCE?

Here's the information on the plan:

HCE 1- 2.12 EBR 13.21% PS

HCE 2- 2.94 EBR 13.21% PS

HCE 3- 3.92 EBR 4.40% PS

HCE 4- 10.44 EBR 4.40% PS

HCE 5- 8.87 EBR 4.40% PS

NHCE 5.90 EBR 4.40% PS

Thank you

[Tom Poje]

well, lets say you break the plan into two component plans

he is either in plan 1 or plan 2.

therefore, he is not in one of the plans.

when you look at that plan the NHCE% = 0, but the HCE % will be greater than 0

therefore you fail

if they are not all owners, you might consider amending to top paid group election in the future.