amending compensation definition

[Guest kevb]

We have had a safe harbor 401k since 2004. At the time the plan was written, very late December 2004, it was inteneded that the one employee who was highly compensated not be included, at least not to the degree his compensation would dictate. We are trying to cut down the match for him.

The plan is not top heavy as the sole owner is third or fourth on the compensation list. We believe we can cut his match by re-defining compensation to exclude commission which is the bulk, but not all, of his compensation.

Questions are...

Can this amendement be done?

What form of notice needs to be executed?

What time lag between notice and amendment effective date must there be?

Thanks