Profit Sharing Allocation on Years of Service

[52626]

Employer wants to allocate the profit sharing contribution as follows:

1. Less than 10 years of servive $0

2. 10 years but less than 15 years $1,500

3. 15 years but less than 20 years $2,000

4, 20 years but less than 25 years $2,500

5. 25 years or more $3,000

Plan is not Top Heavy

Plan will pass coverage.

Are there any issues with the allocation formula.

Client isa willing to submit for IRS determination letter.

Thanks

[ESOP Guy]

See other thread with this question.

[david rigby]

http://benefitslink.com/boards/index.php/topic/57455-allocation-based-on-years-of-service/