Individual allocation groups

[emmetttrudy]

Group of employees is eligible for a profit sharing contribution. It is a new comp plan with each participant in his/her own class. Can the employer allocate the PS contribution based on each participant's deferrals? Seems like no since this would "coincidentally" basically be a match. Anyone have a regulation citation forbidding this? Thanks.

[Bird]

If each participant is in his/her own class, it doesn't matter how you come up with the number, as long as it passes non-discrimination testing. It does make me wonder why an employer would be that obsessed with "matching" contributions when they can just do whatever they want (subject to testing), but...whatever.