Guest pk1 Posted February 10, 2011 Posted February 10, 2011 Anyone have a cite supporting the propositon that a profit sharing plan can have fixed contributions (for example, a set dollar amount per hour)? Thank you.
PensionPro Posted February 10, 2011 Posted February 10, 2011 You can have a document that allows each employee to get a different contribution. You must demonstrate compliance with 401(a)(4) by performing the general test. I don't think your formula is one of the design-based safe harbors. PensionPro, CPC, TGPC
Guest pk1 Posted February 10, 2011 Posted February 10, 2011 Thanks for your response. The plan is not subject to 401a4, as it is a collectively bargained plan.
K2retire Posted February 10, 2011 Posted February 10, 2011 The formula you describe is typical in union plans.
Bill Presson Posted February 11, 2011 Posted February 11, 2011 Search Davis Bacon plans and you'll see lots of examples like that. William C. Presson, ERPA, QPA, QKA bill.presson@gmail.com C 205.994.4070
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