Plan Amendment

[Dougsbpc]

Suppose you have a 5 participant DB plan that was frozen three years ago. The plan is not top heavy.

The plan has a maximum benefit of $5,000 per month.

Only the company owner (and only HCE) has been limited by this maximum.

Could the maximum benefit be amended to $5,500 without unfreezing benefit accruals?

If this is possible, the company owner would still have accrued considerably less per year of participation than any other participant. There were no former participants.

Also, all other participants have accrued much more than .5% of pay per year of participation so I would think 401(a)26 would not be a problem.

Thanks.