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Posted

Calendar year profit sharing plan uses allocation formula that is integrated with Social Security, at full Taxable Wage Base. Plan is terminated as of June 30 of the year. In applying the formula, MUST you use only 50% of the TWB? If not MUST, what is typically done?

Posted

It's possible your question is answered in Reg. 1.401(l)-2(d).

Of course, the 401(l) regs are safe harbor provisions, which might not apply to your plan.

Hey, I'm no expert; there could be a different applicable reg.

I'm a retirement actuary. Nothing about my comments is intended or should be construed as investment, tax, legal or accounting advice. Occasionally, but not all the time, it might be reasonable to interpret my comments as actuarial or consulting advice.

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