Anti-Cutback Rule re: plan with last day requirement

[Spencer]

I have a plan with a 1,000 hour and last day requirement for the profit sharing contribution. Previously, the contribution was allocated on an integrated basis. On December 31, 1998, an amendment to change to an age-weighted formula was adopted effective January 1, 1998. This change significantly decreases the contribution to all non-highly ee's.

Isn't this a violation of the anti-cutback rule? Would this amendment be okay if it was executed on 12/30/98 prior to participants satisfying the last day requirement?

[chris]

It would appear that the amendment should have been adopted prior to the last day of the plan year in order to not run afoul of 411(d)(6) of the Internal Revenue Code. Clearly, if adopted on December 30, 1998, the amendment would be O.K.. As the amendment was adopted on the last day of the plan year, I would agree that it may be in violation of §411(d)(6). Anyone else see it differently???

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[richard]

I agree. I see it as a violation.

[Guest beth beaube]

I also agree that it is a violation.