Linked Plan Rules

[ERISA-Bubs]

We have a SERP linked to our 401(k). Generally, there is no issue, because the participant is required to make any election under the SERP, so he doesn't have the ability to change things around during the year.

There is one exception. Under the plan, whatever the participant elects to defer under the SERP starts going into the 401(k) until he exceeds some limit and then it spills over into the SERP. If a participant is not eligible under the 401(k), the money just immediately begins accruing in the SERP. HOWEVER, if the participant becomes eligible for the 401(k) mid-year, contributions stop under the SERP and begin under the 401(k) until he hits any 401(k) contribution limits (if any).

I think this satisfies the linked plan rules, but just looking for someone to confirm.