Min contribution by classification?

[Guest rickw]

Is it permissible to specify a minimum contribution/allocation for specific classifications vs. for all NHCEs?

Ideally, I would like general language that would permit such minimums without having to be specific and amend the plan each year. Is that feasible?

Thanks!

[kocak]

We have one where each participant in class d gets a minimum of $1200. But client didn't want to get a determination letter, so...

[Blinky the 3-eyed Fish]

Rickw, we have some plans in which language has been adopted where there are allocation groups, the contribution is based allocated pro rata on compensation within each group, but there is a discretionary flat dollar amount that can be given to each participant in a year. None of them have received approval letters yet from the IRS, although research was done prior to achieve some satisfaction of acceptibility.

In short, I don't see a problem with it, especially since plans have determination letters that allow each person to be in their own allocation group.

[Mike Preston]

It is permissable.