Change plan comp- retroactive correction

[jmartin]

Plan currently uses w-2 compensation for matching calculation. A HCE receives quarterly bonuses. Already received one for 3/31/13. Match was calculated on YTD compensation, which included the bonus. The company wants to amend the definition of compensation to exclude bonuses.

Q1 - Do they have to amend now (effective 6/12/13) to exclude all future bonuses (3/31 still must count).

Q2 - Can they amend retroactively to 1/1/13? By doing so would that make the 3/31 bonus excluded and therefore allow the company to "pull back" the match contributed on the 3/31 bonus?

Q3 - Say we were doing this 4/5/13, the match on the 3/31 has been calculated, but not deposited. Can we amend 1/1 to exclude the 3/31 bonus from matching calcuation (and therefore not have to deposit)?

[BG5150]

How is the match calculated? Payroll or annual? (Not deposited, but what's the basis for the match. The plan doc should have that.)

[John Feldt ERPA CPC QPA]

Is the match a safe harbor match?

[jmartin]

Match is currently calculated on a YTD (minus prior) basis. It is deposited per pay. It is not a safe harbor match.