Any limits on percentage of participants?

[Belgarath]

I don't work with these plans. Say a business has 500 employees, of which (pick a number - let's say 90) are highly compensated - say a giant medical practice, or a corrupt political campaign organization... Are these plans limited to a "select group of management or highly compensated employees" similar to a 457 plan, or are there no limits on who/how many can be covered?

Please don't waste any time on this, as it is a quick general question. If it requires any research, PLEASE don't bother!! Thanks.

[PensionPro]

Without doing any research ...

generally covering 1% - 5% of employees falls under the definition of select group of mgt/hces with a greater percentage of coverage allowed for small employers.  20% is generally considered too much.  You have to analyze the facts and circumstances on a case-by-case basis.

[Mike Preston]

Keep in mind that the consequences are severe if the irs thinks you included somebody you should not have. 

[Belgarath]

Gracias.

[jpod]

If you are talking about the "top hat" plan definition, it's only relevant if the NQDC plan is structured in such a fashion that is a "pension plan" as defined in ERISA.  It may not be, in which case the point is moot.  Second, and admittedly it is a technical point,  but the "top hat" issue is something over which the DOL could give you a headache, but not the IRS.  

[XTitan]

I'd also say that the

23 hours ago, Belgarath said:

Are these plans limited to a "select group of management or highly compensated employees" similar to a 457 plan, or are there no limits on who/how many can be covered?

Same "select group of management of highly compensated employees" language applies.