NHCE only 401(k) Profit sharing plan discrimination

Honestly, I should know this, but if a plan has no HCEs, can they still exclude classes (job classes) and have no testing? 

Yes. In fact, you could set up a plan to just cover a single NHCE and have no testing.

We have done things like this quite often for fast food operations, etc. The owners aren't worried about participating, so we exclude them (and all other HCEs if they have any) and cover only the managers and assistant managers at each location. Generally those people are paid pretty well, but don't qualify as HCEs.

22 hours ago, JHalligan said:

Honestly, I should know this, but if a plan has no HCEs, can they still exclude classes (job classes) and have no testing? 

Generally, the answer is yes (and I agree with the preceding post).

You still would want to be cautious about excluding temporary employees or anything similar that makes it look as if the plan is imposing an eligibility service condition greater than that allowed by Code Section 410(a).