Amend Profit Sharing formula & remove accrual requirements

[Mel_1999]

We have a profit sharing plan (12/31 PYE) that currently has an integrated ps formula with an accrual requirement of 1,000 hours and last day.  

The client wants to amend the profit sharing formula to cross-tested and remove all accrual requirements effective January 1, 2017.   

If we are removing the accrual requirements for receiving profit sharing contributions, can it still be amended for the 2017 PY to change the contribution formula?

[KJohnson]

Does it waive the accrual requirement for death, disability and retirement?  And, if it does is there anyone that has had one of those events?

[Mel_1999]

56 minutes ago, KJohnson said:

Does it waive the accrual requirement for death, disability and retirement?  And, if it does is there anyone that has had one of those events?

No it does not.

[KJohnson]

Might want to look at TAM 9735001

https://benefitslink.com/src/irs/tam9735001.html

Slides 4 and 5 of this relatively recent ASPAA program are good

https://www.asppa.org/Portals/2/PDFs/2016AnnualHandouts/WS63 - The Anti-Cutback Rules of IRC 411d6.pdf

Seems to me that nobody has accrued any benefit for the year under the old formula and you should be able to amend even if the new formula has no allocation conditions.

[Mel_1999]

15 hours ago, KJohnson said:

Might want to look at TAM 9735001

https://benefitslink.com/src/irs/tam9735001.html

Slides 4 and 5 of this relatively recent ASPAA program are good

https://www.asppa.org/Portals/2/PDFs/2016AnnualHandouts/WS63 - The Anti-Cutback Rules of IRC 411d6.pdf

Seems to me that nobody has accrued any benefit for the year under the old formula and you should be able to amend even if the new formula has no allocation conditions.

Thanks so much for your help on this.