So I see where you can now have multiple groups and call them by individual names but can you have a partnership with 3 partners and 2 clerical and identify each group as Partner 1 2%, Partner 2 20% and Partner 3 20% and 5% to Clerical 1 and 5% to Clerical 2? On the adoption agreement it lists that the allocation method will be based on pro-rata compensation or equal dollar amounts. I guess if you reflected %s it would be pro-rata based on compensation but my concern is can you do this and NOT create a partnership 401(k)? Partner 1 always makes less $ than the other 2 partners so having different %s is beneficial to them. Also I'm wondering if you could have a 0% for a participant? Thank you ---greatly appreciated --- whoever you are!

You do not need to define the groups. You simply indicate that each employee is a separate group. That would include partners.

So you wouldn't have Group A as John Doe Group Group B as Susie Smith Group etc.? It would be defined in the document as Group A "Each employee is a separate group"? So then you could still give different %s of wages to each employee even with only 1 Group? And there still isn't a danger of creating a partnership 401(k) plan? Thanks alot for responding and responding quickly.

The VS would not list groups if you chose for each employee to be his/her own group. Also, remember that this appproach is not available in a prototype (where the number of groups is limited).

Be careful, though . . . see this discussion re: preventing partnership new comparability plan from being treated as a 401(k):

http://benefitslink.com/boards/index.php?showtopic=39179