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Posted

We have a client that has acquired another company.  They are part of a controlled group so the new company will be part of the plan.  The client would like to give a more generous match to the new company's employees.  They have no problem excluding all HCE's from the more generous match formula.  Since there will be only NHCE's receiving this more generous match, is there any additional testing we must do; such as benefits, rights and features?  Any other issues we might not be taking into consideration?

Posted

Any benefit, right or feature that is available only to NHCEs is automatically nondiscriminatory. Besides the ACP test (which would only be helped by the additional contributions for NHCEs) I can't think of any other issues.

Free advice is worth what you paid for it. Do not rely on the information provided in this post for any purpose, including (but not limited to): tax planning, compliance with ERISA or the IRC, investing or other forms of fortune-telling, bird identification, relationship advice, or spiritual guidance.

Corey B. Zeller, MSEA, CPC, QPA, QKA
Preferred Pension Planning Corp.
corey@pppc.co

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