Is 2 year wait an issue for a new plan?

Hi

Did a proposal for 2022 for a one lifer. They said to go ahead, asked for w-2 and when I got it, there were 2 listed.

CPA said the other was part-timer and terminated in 2022. Insisted on DOH and DOT.

Surprise surprise, DOH early 2021 with DOT late 2022. I asked for hours and of course, full-time employee.

Can set up the plan with 3 year cliff and/or 2/20 with no prior service before 1/1/2022 aka effective date of the plan. Not sure how the partial termination would play here as employee is not replaced. What do you think on this?

The question here: Is it ok to set up the plan now with 2 year wait (100% vesting is not an issue as it is only the owner)?

This is unchartered territory for me and not sure about discrimination issues.

Thanks

Sounds absolutely smart to set it up with a 2-year wait.  And it buys you time if there's someone later hired to replace whoever that other person was.

I suppose, make sure the owner has 2 years herself in this enterprise.

You don't say if elective deferrals are part of the plan. You can't have 2 year eligibility for the deferral piece.

I am only concerned about DB and PS. Cannot have retro deferrals anyway.