True-up only for individuals who hit the 402(g) limit

[bitsyhaze]

Is a 401(k) plan permitted to only true-up employer matching contributions for plan participants who have hit the 402(g) limit for contributions ? Is there any statutory cite to support that this is possible?

[Bill Presson]

I've never seen this done, but I can't imagine where you could get a cite to support it.

[Tom Poje]

let's see, chances are the only ones who hit the limit are HCEs, so in a given year the only people who get advantage are HCEs, which at the minimum probably fails BRF (if such a method were written into a document, which I find hard to believe)

[Bird]

It's probably one of those things where you have to ask what is trying to be accomplished. I would guess that there is a misunderstanding about something or other.