Last Day Requirement

[dmb]

A cross tested profit sharing plan has a last day requirement to receive an allocation. Based on a couple of participants terminated during the year, cross testing does not work. Can the plan be amended for 2003 only to remove the last day requirement?? or does it have be removed permantly if it is removed?? Thanks.

[Mike Preston]

I believe it can be amended to remove it only for 2003.

[Blinky the 3-eyed Fish]

1.401(a)(4)-11(g) is screaming for you to read it and give just what you have to to one or both of the terminees, rather than a blanket removal of the last day requirement and the potential additional cost that mechanism may add.

[dmb]

Thanks, I actually knew the answer, but my superiors wanted further confirmation.

[AndyH]

And they'll accept confirmation from Blinky the 3-Eyed Fish?

[dmb]

Well, it was Mike Preston's confirm that really solidified it, but Blinky's quote of 11(g) confirmed what i was saying.

[Mike Preston]

I would accept confirmation from Blinky the 3-Eyed Fish!

[AndyH]

So would I but I wonder what an IRS auditor would say if we cited Blinky the 3 Eyed Fish as authority. How about Tax Court?

[Blinky the 3-eyed Fish]

My radioactivity gives me super powers, except when I say something stupid or incorrect. That is the fish in me talking.