Santo Gold
Sep 15 2006, 03:43 PM
Can a plan exclude "non-exempt" employees from a 401(k) plan, as long as 410b is satisfied?
rcline46
Sep 15 2006, 04:00 PM
First you have to pass 410(b) and then you still have to pass ADP/ACP with those excluded by class treated as -0-. Oh, of course the 410(b) pass is the ratio percentage test, right?
Santo Gold
Sep 15 2006, 04:13 PM
Correct on 410b = ratio% test. They will pass ADP and 410b easily even with these non-exempts being zeroes....I'm was just checking to ensure that they can be kept out of the plan by definition.
Pensions in Paradise
Sep 15 2006, 05:05 PM
Just to clarify, excluded employees are not included in the ADP/ACP test.
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