Can matching contributions made through part of the plan year be recha

[Guest Pat Metallic]

An employer has a discretionary match that maximizes at 3% of compensation. He has made this contribution for his employees during the first four months of this plan year. He has a discretionary profit sharing provision that he has not been using. The plan is top-heavy.

He is going to drop the match and initiate a 3% discretionary profit sharing contribution to maintain the same percent of pay for the participants while satisfying the top-heavy minimum. He does not implement a Board of Directors resolution to communicate either types of discretionary contributions.

Is there a problem to view or recharacterize the first four months of employer contributions as profit sharing contributions rather than matching contributions. Both types of employer contributions have the same eligibility requirements and vesting provisions.

[Guest Hans Moleman]

If the participants have already satisfied the accrual requirements for the match, I don't see how you can "reclassify" it. Even though it is a discretionary match, the employer did indeed fund some of the match and the participants that have satisfied the accrual requirements are entitled to it.

Is there any way the match could be used to satisfy the top heavy minimum and have the plan still pass the ACP test?