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I agree with Bill - assuming the plan language allows it - I'm only fixating on this because I have worked with documents that would NOT permit this, so just be careful. Odds are good that the document doesn't contain any such restriction as I originally mentioned on loans from insurance cash value anyway.

You referred to the amendment in the past tense, so I assume it has already been adopted. The wording of the amendment will determine if the person is still an active participant as of 1/1/2015. Participation is not a protected benefit but the conditions for receiving a contribution are protected after those conditions have been met 1.411(d)-3 Q&A 1(d). So, unless the plan has a last day requirement, you may have a problem using another amendment to prevent him from getting a 2015 contribution. If I read your situation correctly, the amendment, instead of increasing allocations for current NHCE participants, makes a short service ineligible employee a participant who receives an allocation. Does anyone know if the IRS would consider this similar enough to the situation in their short service memo to be a concern?