H2A Employees

[Cloudy]

We were asked to run a qualified plan proposal for a company in the farming industry. The business has 3 equal owners, and other than the owners all of the employees are classified as H2A employees. Apparently over the course of the year some of the H2A employees work more than 1000 hours. I was told they return "home" and many come back the following year to work again. Are H2A employees an excludable class of employees for coverage purposes, similar to non-resident aliens? 

[RatherBeGolfing]

7 minutes ago, Cloudy said:

...excludable class of employees for coverage purposes, similar to non-resident aliens? 

non-resident alien and who receive no earned income (within the meaning of section 911(d)(2)) from the employer which constitutes income from sources within the United States. 

 

[Cloudy]

So, not excludable, thank you!

[Flyboyjohn]

Not excludable but certainly not likely to make 401k contributions so I would think you'd be looking at a safe harbor match plan design (with a triple-stacked-match if the owners are looking to maximize at the 415 limit)