Plan Amendment for Definition of Allocation Compensation

[Guest sritts]

What is the timing requirement to amend the definition of allocation compensation in a defined contribution plan.

The plan document uses 415 compensation, however, operationally excluded auto allowance and health club reimbursement (taxable fringe benefits?)

[Bird]

Before any participants have earned the right to an allocation under the existing formula and/or definitions. That could be as late as the last day of the year if the plan requires employment on the last day, or it could be before anyone has earned 1000 hours, or 501 hours, depending on the requirements for allocations.