Timing of amendment

[pbarrett]

We have a client who presently has a 401(k) with a discretionary profit sharing contribution option. It is a calendar year plan. The client would like to amend the profit sharing allocation from a straight allocation based on comp to a cross tested plan effective for the '99 year. We are using a standarized document. Isn't too late for the '99 year?

[Guest]

since the document is standardized, that implies terminees with > 500 hrs will be eligible for a contribution under the curren formula. since it is late in the year, I would asume all employees (whether terminaed or not) have met this requirement. therefore they would accrue under the current formula. I agree its too late.

a 2nd plan could be set up using a cross tested formula, but that would seem to be the best you can do at this late date.