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Timeframe to amend 2004 Profit Sharing Plan Allocation Method


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Guest ChopperPilot
Posted

The sponsor of a 401K Profit Sharing Plan with a 12/31/04 plan year end would now like to act on a proposal I did in November 2004 to change the profit sharing allocation method from non-integrated to cross-tested. Is it too late to amend the Plan to have a cross-tested allocation, or any other different allocation method, for 2004? Thanx.

Posted

There are some who would argue that if the participant satisfied the allocation conditions under the pre-amendment allocation formula, they would have a protected benefit. Does the plan require a last day and/or 1,000 hour requirement?

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