A Plan provides for a Plan-Year-based discretionary match with a year-end true up. There are no allocation conditions on the match. The sponsor is currently not making a discretionary matching contribution. Can the Plan be amended prospectively, but during the current plan year, to a per-payroll match with no true up? Or does this violate the anti-cutback rule?
For example: it is now April 2020. The sponsor is interested in beginning a per-payroll discretionary match in June 2020, with no year-end true up. Can we amend the match from plan year to per payroll, effective June 1, 2020? Or does this constitute a cutback because employees will not receive a match on deferrals made earlier in the year?
Thank you in advance for any insight!
