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Exactly - and what I am telling everyone is that this only works for two types of plans: 1) HCE-only plans that do not need to test and 2) very large plans that can pass ACP testing with the VAT contributions. If your plan(s) is(are) in between, fuggetaboutit!

I think you're OK, and if the deferred bonus does not vest until the end of the 3-year contract and is paid at timely thereafter (within 2 1/2 months or tax year-end), you have a short-term deferral and don't really have to deal with 409A at all.

One can only hope. He needs to go!

Your questions are well-founded and thoughtful. I'm reading the very good responses by BG, Lou and CB (all regulars) to this new member to the Board and wondering whether it's also helpful to suggest to you the ASPPA or other courses like CEBS that many of us took (and take) over time to try to stay on top of all these rules, plus the 20-40 years of experience. There are good ways to over time improve one's knowledge base and, for most of us, it should be a lifelong experience. I know for me it is.

And, such a silly answer it is. So easy to just provide a blanket extension.

Yes, provided coverage passes, as you note. Also, as ESOP Guy pointed out in responding to another post, such an amendment could create a partial termination. So you kick these employees out of the plan prospectively but may have to fully vest them at 1/1/2022 in whatever account they have accumulated and then track those inactive accounts until there is a distributable event.