Dougsbpc Posted October 10, 2021 Posted October 10, 2021 Suppose you have a small 401(k) plan that provides for a safe harbor NEC. There are 4 business owners (25% each) and 10 employees (all non-key nhces). The plan only provides the safe harbor NEC to non-keys. For the past 4 years, 1 owner and 3 of the 10 nhce employees have been excluded. They have a December 31 year end. The company wants to amend the plan effective November 1 to remove the exclusion for all (i.e. they want everyone to be eligible). Question: if this is done now, will the 3 nhces that have been excluded be entitled to the safe harbor NECs even though they will have only had 2 months to make salary deferral contributions for this year? Would we be able to include them as benefiting for the salary deferral part of the 410b coverage test? Thanks.
Recommended Posts
Create an account or sign in to comment
You need to be a member in order to leave a comment
Create an account
Sign up for a new account in our community. It's easy!
Register a new accountSign in
Already have an account? Sign in here.
Sign In Now