Discretionary Amendment - Amending Forfeiture Allocation Methods - Anti-Cutback Violation?

[David Olive]

The Plan document currently provides that forfeitures may be allocated to Nonelective Contributions and to pay Plan Expenses.  The Employer would like to amend the Plan to allow forfeitures to be allocated to, in addition to Nonelective Contributions and Plan Expenses, also to: (1) Additional Matching Contributions, (2) Applied to Reduce Nonelective Contributions and (2) Applied to Reduce Matching Contributions.

My initial thoughts are this amendment should be effective the beginning of the next plan year to avoid a potential Anti-Cutback violation?  Any other issues I may be missing?

[Bird]

I don't think so. I get where you are coming from but it's almost like saying if a plan didn't have profit sharing contributions, you couldn't add that mid-year because you are potentially taking away money from other employer contributions (e.g. matching).