SH 401K for employees under a CBA

It's one of those days and this just came up

A client that does not currently offer a retirement plan just (like last night) acquired a new division with employees who are under a CBA.  The CBA states that the employees must have access to a 401(k) plan with a safe harbor match and an additional fixed match. 

He currently has about 40 employees, and the new division will add 7-8 employees covered under the CBA.  Since it is last minute, he wants to put the plan in place today, but exclude all employees not covered by the CBA.  The 7-8 CBA employees are all NHCEs, all owners and HCEs are part of the excluded group.

I know I can do it from a document perspective, and since no HCEs will benefit I'm thinking that covering a small number of employees will still work, but something is telling me Im forgetting something....

Anyone see a an issue with only the CBA employees having access to the plan even though they are all NHCEs?

Thanks

I don't see anything that comes close to a problem.

The only issue I see is that it has to start tomorrow if it's a 2021 calendar year plan.

Just now, Bill Presson said:

The only issue I see is that it has to start tomorrow if it's a 2021 calendar year plan.

He already said plan is starting today.

Just now, Mike Preston said:

He already said plan is starting today.

Saying it and getting it done are two different things. 😁

Just now, Bill Presson said:

Saying it and getting it done are two different things. 😁

True dat.

18 minutes ago, Bill Presson said:

Saying it and getting it done are two different things. 😁

First payroll won't process until mid October - so its tight on time but doable

Thank you both!

RatherBeGolfing, under Treas. reg. 1.410(b)-2(a)(7) a plan that covers only collectively bargained employees automatically satisfies coverage, so you're fine. 

1 hour ago, Luke Bailey said:

RatherBeGolfing, under Treas. reg. 1.410(b)-2(a)(7) a plan that covers only collectively bargained employees automatically satisfies coverage, so you're fine. 

So do plans that cover nothing but NHCEs. So does that make this doubly fine?

On 10/1/2021 at 12:00 AM, Mike Preston said:

So do plans that cover nothing but NHCEs. So does that make this doubly fine?

I guess so, Mike. But there's less data involved with the collectively bargained exception.