Guest esi-jht Posted January 31, 2006 Posted January 31, 2006 The plan document allocates contributions as follows: "Uniform dollar amount for each participant will be determined annually by the board of directors" I've never adminsitered this type of allocation and have a couple of questions. The employer wants to make this determination quarterly. I don't see that they can do that and still meet the SH. Is this correct? If the plan provides for contributions to be allocated on compensation only from entry date, how does that come into play w/ this type of formula. If a participant enters the plan 10/1 (calendar year plan), wouldn't his allocation still have to be the same dollar amount as all the other participants to meet this sh formula? If the Employer has actually made this determination quarterly and because of this one participant (the guy who enters 10/1) gets a dollar amount different than the other participants, have we violated terms of the plan document? We also lose the SH allocation and if there are NHCE's we must test for nondiscrim? Thanks
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