Multi-shift workforces, hourly and salaried splits, and high turnover create plan design challenges. We build 401(k) plans that work for the production floor and the front office.
Request a Plan ReviewOne-Size Plans Don't Fit Manufacturing
Testing Strategy
Manufacturing companies typically have a wide compensation gap between production workers and management. Standard plan designs often fail nondiscrimination testing as a result. We design contribution formulas and eligibility provisions that pass testing while maximizing owner and management benefits.
Forfeiture Strategy
Production floor turnover generates forfeitures. We design vesting schedules that balance employee retention with forfeiture reallocation — reducing your net plan cost when employees leave before fully vesting.
Consolidated Admin
Whether you have one plant or five, we consolidate plan administration across locations and handle the combined compliance testing.
CBA Compliance
If some employees are covered by a collective bargaining agreement, they may be excludable from the plan. We navigate the exclusion rules and ensure proper testing of the remaining workforce.
FAQ
Often yes — especially with smart vesting design. High turnover generates forfeitures that can be reallocated to remaining participants or used to reduce future employer contributions. A well-designed plan can actually cost less than you expect once forfeitures are factored in.
Yes. Eligibility provisions can require minimum age, hours of service, and length of service before an employee becomes eligible. We design these provisions to include the employees you want to benefit while legally excluding those you don't.
Yes. Union employees covered by a CBA are generally excludable from the company's 401(k) plan, but non-union employees must be tested as a separate group. We handle the testing mechanics for plans with mixed workforces.