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Fixed Contribution for Profit Sharing Plan


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Posted

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.

Posted

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

Posted

Thanks for your response. The plan is not subject to 401a4, as it is a collectively bargained plan.

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