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non-elective contribution allocation


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Guest Mike Kimball
Posted

Anyone know of a document (custom or prototype(?)) that provides for periodic allocation (e.g. quarterly, monthly, etc., similar to elective and match) of non-elective contributions. Any thoughts about this issue? Our doc only provides allocation at plan year end (aka anniversary date).

Posted

I work with a client that contributions profit-sharing money quarterly. Because it requires employment on the last day of the calendar quarter, it doesn't fit a 401(a)(4) safe harbor, but the general testing passes easily so it needs to be rerun only every three years.

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