exotic cb formula

[abanky]

I just saw this allocation formula... why does this not seem right?

1 hour for accural.

Group A Allocation: 10,000 if employed from 1/1 to 3/31. 20,000 if employed from 1/1 to 6/30, 30,000 if employed from 1/1 to 9/30 or 40,000 if employed from 1/1 to 12/31.

[My 2 cents]

Doesn't look like it would meet the elapsed time rules (40000/365 per day emplolyed would).

It doesn't look as though proper concern is being given to hours worked.

What sort of accrual basis is it expected to meet?

Let me guess - the plan does not cover any rank and file employees, does it?

[abanky]

nope... just hces

[FAPInJax]

Looks like quarterly allocations of 10,000. I do not believe there is any prohibition against having more than 1 allocation a year (similar to a DC plan).