matching contributions

[k man]

would it be a problem if a plan sponsor amended its plan which previously provided for a discreitionary match so as to add a last day rule for HCE's prior to the end of the plan year? Thus effectively adding an additional allocation condition during the plan year for HCE's but not NHCE's.

[stephen]

I think it would be ok as you are allowed to discriminate against HCE's as much as you like.

[david rigby]

But you might have an anti-cutback problem.

[MWeddell]

Pax is right. Once an employee, regardless of whether he or she is highly compensated, has satisfied all of the conditions for receiving an allocation of contributions for a plan year, an amendment to change the allocation formula or conditions violates the anti-cutback rules. See Treas. Reg. 1.411(d)-4, Q&A-1(d)(8).

[Guest kmartin7651]

Can anyone give me some direction? I am an employee with a large, but not particularly healthy, corporation. Last year, our pension plan was changed and the company began matching 401 K contributions, 3% for a 6% contribution by the employee. This year, the company gave us the option to freeze the pension plan and increase the company match portion to the 401K, or keep both the pension and 401K as they are. I don't know where to start to research this. Any advice?