A safe harbor matching plan wants to make a profit sharing contribution for 2008. The plan would need to add the profit sharing option, currently it just allows 401(k) and safe harbor match. I was told that it could be amended for 2008 since the plan is being made less restrictive, but I have also been told you cannot amend a safe harbor plan mid year except for roth contributions and hardships provisions.
My concern is that not just a profit sharing contribution, when the plan document was prepared there was no vesting schedule selected, since there were no vested contribution options. I think the plan would also have to add a vesting schedule. The plan wants a cross tested formula which would require a new document not just an amendment.
Has anyone added a profit sharing contribution to a safe harbor plan mid year?
