Limiting Only Catch-up Eligible HCE's

[austin3515]

Can I limit Catch-up Eligible HCE's? So all HCE's eligible for catch-ups are limited to 5% of pay plus catch-ups?

Or would that be age discrimination since your limiting people who are over age 50 exclusively?

[Lou S.]

Generally you can discriminated against 1 HCE over another but in this case I think you run into potential ADEA violations.

[Kevin C]

Not unless the other HCE's are limited to 5% of pay. Otherwise, the plan won't pass the universal availability requirement for catch-ups. The last sentence of 1.414(v)-1(e)(1)(i) says "However, a plan may not provide lower employer-provided limits for catch-up eligible participants."

[austin3515]

C'mon, that's gotta feel good Kevin, right?

Thanks!