Discretionary Match Discontinuance

[austin3515]

Are people recommending a board resolution to discontinue a discretionary pay-period match?

How about to start a discretionary pay-period match?

I have always done it, and there is a bit of a disagreement in the office of how important it is.

[Bird]

No and no.  A courtesy notice maybe.  In my own plan, my accountant tells me to adopt a resolution confirming the PS that was done (we don't do matching contributions) so it might make sense to have an end of year reso that says "whatever we did is approved."

[austin3515]

My understandings is that the way corporations dcument discretionary actions is through Board Resolutions though.  Is that incorrect?

[Larry Starr]

3 hours ago, austin3515 said:

My understandings is that the way corporations dcument discretionary actions is through Board Resolutions though.  Is that incorrect?

Well, I'd rather say that it is not the only way.  A corporate officer can have the authority. In some cases, it just needs to show up on a tax return and it is considered an action of the business.  In this case, I go with the "no no" answer as well.

[austin3515]

Well clearly it can do no harm to formally document a corporate action.  I guess  I'm in the minority but I want to document the corporate action myself.

[Larry Starr]

10 minutes ago, austin3515 said:

Well clearly it can do no harm to formally document a corporate action.  I guess  I'm in the minority but I want to document the corporate action myself.

Sure; belts and suspenders.  Like I said,  it's not the only way, but it is the way we do most of them.

[AMDG]

I agree with Austin3515.  Better safe than sorry.

[Patricia Neal Jensen]

I always try to provide a Board Resolution for such an action.  And an accompanying notice to the Eligible Participants.   I have had a plan sponsor refuse to do a Resolution. They chose to rely on a general resolution included in the one adopted when the plan was adopted which permits an officer, etc. of the Corporation to take whatever actions are necessary and appropriate.