1000 Hour Accrual Requirement

[JackS]

I know you cannot amend the allocation methodology once someone has satisfied the accrual requirements for a particular year.  In this case, there is a 1000 hour requirement for accrual of the NE.  I thought there was guidance issued by the IRS about 6 - 8 year ago where they specified that if the amendment was done by May 15th (Calendar year plan), the amendment was permissible even if someone had worked more than 1000 hours.  I cannot find anything to support this now.  Does this sound familiar to anyone?  

 

[ETA Consulting LLC]

Doesn't sound familiar to me.  

Good Luck!

[Mike Preston]

This may help or hinder and it may or may not be what was alluded to:

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

[Bird]

Doesn't sound familiar.  If the plan also has a last day requirement that would mean that no one has met that requirement and the formula could be changed.

[CuseFan]

Unless the last day (and/or hours) requirement is waived for death, disability and/or retirement, in which case someone could (activity would have to be checked) satisfy entitlement to a contribution very early in the year and effectively kill the ability to amend the formula.

[Larry Starr]

In all the years I handled the ASPAA Q&As with IRS, that answer never was given and, based on my knowledge of those folks, never would be given. Count the hours; if they have 1000 before the amendment (whatever date), it's a 411(d)(6) protected benefit and you have to preserve it.

[JackS]

Thank you all!