Match True Up

[LMOC]

Summary - A plan has a payroll by payroll fixed match. They may want to amend the plan retroactively to allow for a match true up. Does IRS Regulations allow for a match true up essentially at year end retroactively to 1/1?

[Lou S.]

As long as it is not a safe harbor plan (because it would change the info in the notice) you should not have any problems with such an amendment as you won't be cutting anyone's benefit. I think the IRS views this as a discretionary amendment that needs to be adopted before the end of the year.

[LMOC]

Thank you Lou! It's not Safe Harbor, but it does have a Fixed Match. Does that change your thought?

[Lou S.]

No. You are increasing the match for some or all but none will have match cut.

[LMOC]

Thanks so much!!!!!

[QDROphile]

Any concern that the amendment itself (which subject to 401(a)(4)) could be discriminatory because it benefits only the HCEs? That gets us back to the old questions about neutral terms of an amendment the effectively benefits only HCEs when adopted but could be nondiscriminatory over time.