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Showing results for tags 'Adding non-safe harbor alloca'.
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I have a client with a calendar year 401(k) plan. The plan currently has a non-integtrated, pro-rata allocation for employer contributions. Unbekownst to us, the client added a cash balance plan just prior to year end. The cash balance plan uses a non safe harbor allocation method. The cleint has come to us to amend the 401(k) plan to provide for the non safe harbor alocation. We told them we could do it for 2014 but not 2013 saince they requested the change after the plan year end. The client's financial advisor has come bact to us and requested that we amend the plan retroactively under 1.401(a)(4)-11(g). I am not sure this is really a corrective amendment for the 401(k) plan but I did see one example in the regs that indicates that if the client has 2 plans, the correction can be made in either plan. The plan is not a safe harbor plan. Thanks for any help.
