I have a new client with an old SARSEP. They have many seasonal employees and high turnover so that ADP and top heavy testing are issues.

Employees MAY be excluded from SARSEP calcs if they
1) NOT worked for company in 3 of last 5 yrs
2) Less than $500 in compensation
3) Under age 21

Obviously, excluding employees could help the calculation for owner-employees. I believe the company has been LESS restrictive with exclusions (since the exclusion language allows LESS but not MORE restrictions), allowing new employees to participate. Can the plan be amended in a given year to now exclude new employees? If new employees were allowed to participate in 2007, can the 3 of 5 year restriction be put back into place in 2008?

Thanks much.