Plan Documents

[Guest Karenm]

If a client has a 401(k) profit sharing plan (for 5 years) and the profit sharing contribution has not been used and the client does not intend to make a profit sharing contribution should they amend the plan and eliminate the provision?

[WDIK]

I do not see why that would be necessary.

[FormsRstillmylife]

The real question for me is whether it is OK to not mention the PSP provision in the SPD or in a Safe Harbor Notice when the text exists. I feel more comfortable amending it out of the plan when deleting from the SPD.

[Guest Karenm]

Thanks for your reply, I guess I am questioning the fact that it is a profit sharing plan and the substantial and recurring contribution rule? Is this not applicable in a 401k profit sharing? Are we misleading employees by including the profit sharing provision? Thanks again

[QDROphile]

The elective deferral feature provides the recurring contributions. What is misleading about a discretionary contribution unless you say you intend to make a contribution and don't? The question about saying nothing when there is no intent to make any contribution is worth consideration.