Age-Weighted Profit Sharing Plan

[ac]

I am preparing an allocation for an age-weighted profit sharing plan. The plan has two participants that terminated in the plan year who earned 1000+ hours. In an age-weighted plan, should these terminated participants who are not excludible under 401(a)(4) receive an allocation? The plan document requires employment on the last day of the plan year, however, in order for all the participants the have the same EBAR, should these two receive an allocation?

[Blinky the 3-eyed Fish]

They do not have to have the same EBAR because they did not satisfy the requirements to receive an accrual. What you have to consider is if the plan passes coverage. If it does, they get nothing. If it doesn't, then let us know and we will give you the straight skinny.

[maverick]

Blinky, I like "they get nothing." Sounds like Judge Smails in Caddy Shack when addressing his grandson:

"You'll get nothing and like it!!"

Good way to end a Monday.

[Blinky the 3-eyed Fish]

While the corollation was unintentional, I can quote that line verbatim.

Spalding: "I want a hamburger, no a cheeseburger. I want a hot dog. I want a milkshake. I want potato chips." Judge Smails: "You'll get nothing and like it!"