401(a)(26)

[abanky]

I have a cash balance plan which for 2009 gave an allocation of 2% to the NHCEs and passed the meaningful benefit test (i'm taking the view of 40% of all nonexcludables get a .5% accrual)... now in 2010, i have to give 2.1% to the NHCEs to pass... do I have to amend the plan for this change? or can I always plan on giving 2% to the Nhces and then if need be to increase the allocation as dictated?

Thanks,

Andrew

[AndyH]

Unless the plan has some unusual "gateway" language, you can amend the plan permanently or you could do a corrective amendment under 1.401(a)(4)-11(g) which could be either temporary or permanent. You get extra time to amend under 11-(g) - up to 9.5 months after the PYE, and even longer under some circumstances which would include a pending FDL application.

[abanky]

Thanks Andy, that's what i thought.