Plan contributions

[Gary]

A plan sponsor has a 401k plan. Note the plan does not have a profit sharing provision. Makes no sense to me.

The company only has two employees. Mother and daughter.

I received data from client where they state that a contribution for one participant (over age 50) received a plan contribution of $25,000 for 2009.

My assessment is that since 2009 is past we cannot amend the plan to provide a profit sharing feature for 2009. The restated plan effective 1/1/2010 does include a profit sharing feature.

Therefore, the participant can defer 22k 401k, but the additional amount cannot be a profit sharing contribution?

Is that correct? Am I overlooking somoething?

Thanks.

[david rigby]

Shot in the dark: any possibility there is a second (PS) plan somewhere in the ether?

[GMK]

2nd shot in the dark:

Is it possible that by "contribution" they meant deferral plus match? (I realize that we're grasping for straws here.)

[BG5150]

Or after-tax?

Loan payments?

Top Heavy? (if non-keys get a TH contrib)

[Gary]

Thanks.

Love the Bart simpson icon.

The plan does not provide for match either and the contributer is the owner and HCE so TH won't apply.

[austin3515]

Any chance the additional $3,000 was deposited in the following plan year? You could add profit sharing for that next plan year...