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Calendar year plan with fiscal year PS allocation


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Guest justatester2
Posted

We have a client that amended their plan from an off-calendar plan year to a calendar year plan year ending 12/31/10. At the same time, they amended the Profit Sharing portion of the plan to say that they will continue to make PS contributions "at the end of the fiscal year of the company ", which is 5/31. The amendment goes on to say that the "contributions will not exceed 6% of the compensation of eligible participants for the fiscal year of the Company".

Assuming that the definition of compensation used for the allocation is a SH definition of compensation, will this allocation require a 401a4 General test? Are they any other issues, e.g., 415 testing, that anyone can think of?

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