Limiting HCE Deferrals through Corporate Resolution

[Guest psgross]

Rather than amend the plan document to set a HCE Deferral Limit for catch-up contribution purposes, can it be done by a corporate resolution? Everything I read in the regs indicates that any limitation on deferrals by HCE's must be spelled out in the plan document.

[KJohnson]

I think the ability to limit has to be in the document, but what the limit is does not have to be...

7/8/2005: Technical Tip: Limiting HCE Deferrals through Corporate Resolutions (Reish Luftman Reicher & Cohen)

Excerpt: "Technical Tip 148: .... If a plan document provides that the administrative committee may limit HCE deferrals in order to prevent ADP testing violations, and the plan administrator takes that action through resolution and not by plan amendment, is this considered to be an 'employer-provided limit' so that contributions in excess of this imposed limit are eligible to be treated as catch-up contributions? Response: Yes"

[E as in ERISA]

Source: http://www.asppa.org/archive/gac/2004/irsannqa.pdf Question 9

[E as in ERISA]

ASPPA has now very graciously posted all links to government Q&A '99 - '04 on one page http://www.asppa.org/education/ed_conf_qa.htm

And here's the ABA link http://www.abanet.org/jceb/agency.html

[Guest psgross]

Thanks to both responders.......

[E as in ERISA]

Has ASPPA posted anything more current than 2004 IRS Qs on its web site. Where?

http://www.asppa.org/education/ed_conf_qa.htm