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Showing results for tags 'Profit Sharing Contributions'.
Found 2 results
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Good afternoon to all, We are setting up a new plan for a controlled group of 5 companies that will probably have 2,000 participants when it's all done. By design, HCEs and Keys are excluded from participating. There will never be a test failure such as ADP, ACP, 410(b), Top Heavy. That's not the issue. The issue is that the owner (one man owns all of it) wants to pick and choose select groups or individuals to whom he will give a discretionary match and/or a discretionary profit sharing contribution according to his pleasure. His idea is that since there are no applicable tests to fail, why not? We feel uneasy about this but can't find anything to hang our hat on. Is this really permissible? Thanks for your thoughts on this.
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My client who is an ER directed only plan, has an EE going out on military leave. The plan provides for a profit sharing contribution with a 1000 hrs requirement. When the EE returns to work my client doesn't think that this EE will have met his normally required 1000 hrs. for the profit sharing contribution. Is the client required to give them credit for 1000 hours of service while on Military leave to qualify for the profit sharing contribution?
