vqualplan
Oct 18 2005, 03:30 PM
The plan consists of 2 owners and a 3rd non-owner HCE. THe plan has a deferral provision and matches $.50 up to the maximum deferral limit.
If the groups are set up so the 2 owners are in a group and the other HCE is in his/her own group. Can we max the 2 owners at the annual contribution limit whilst giving the non-owner HCE a $0 contribution. It seems to me it would pass the testing but somehow does not "feel" right.
Thanks!
Archimage
Oct 18 2005, 03:32 PM
I assume you don't have any NHCEs. If that is the case, you can do whatever you want. There is no testing since there are no NCHEs.
DFerrare
Oct 18 2005, 05:50 PM
Don't forget about top-heavy if the match doesn't cover it.
vqualplan
Oct 18 2005, 05:52 PM
The match does cover the top-heavy minimum.
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