Match Contributions Allocated After Plan Year End

[12AX7]

I'm familiar with the rules regarding excess aggregate contributions. However, if the match is not allocated until after the end of the plan year, is there some way in the regs that would allow the employer to only allocate an amount not to exceed the ACP test limit?

I understand following the terms of the plan, but it seems like a silly exercise to knowingly allocate the excess match to only have to prepare paperwork to immediately distribute the excess to the the HCE. Anyone have a creative way around this?

Thanks.

[Jim Chad]

I agree it is silly and no I don't know a way around it.

Has anyone ever not contributed the full amount to the HCE and have it found on audit? I wonder what an auditor would do....

[12AX7]

I reluctantly agree with you. I'm not sure if the IRS cruises these boards or not, so I will reserve my answer to your question.