Can an employer change discretionary match?

[Guest Bob Miller]

If an employer has a discretionary match can he; 1. pre-fund his match as deferrals are made at different rates throughout the year?

2. if he plans on pre-funding the discretionary match as deferrals are made, does he have to state what the % will be at the beginning of the plan year?

It is my understanding that if an employer has a discretionary match, he can pre-fund as deferrals are made if he gives the matching formula before hand. To go along with that, it is also my understanding that once the ER starts to match during the year, the % can not be reduced only increased. The only way for an employer to have a true discretionary match is to wait until the end of the plan year. At that point he can state his match formula or state that a match will not be given. Am I correct in my thoughts? Thanks for the help.

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Bob Miller