Allowing early entry

[JPIngold]

I have an employer who insists on maintaining a one year wait for eligibility in his plan, but in order to attract an incredible salesman who wants to defer, he would like to waive the requirement for him .... saying it would be a one time exception. Does anyone have a good list of reasons not to do this (other than water cooler talk)? He wants to just let him in to defer and not receive the employer contributions until he is otherwise eligible.

Thanks.

[Tom Poje]

well, if that incredible salesman would make enough to be an HCE (even though it wouldn't take place for a year)

it smells of favoring an HCE, which of course would be discriminatory.

probably isn't the intent of the regs to have something like that take place.