When can a plan be amended to exclude HCEs from a profit sharing contr

[John A]

Can a plan with a profit sharing contribution feature be amended during the last part of the year to exclude HCEs from the profit sharing contribution? If the only current requirement for the profit sharing contribution is a 1000 hour requirement and the HCEs have already earned 1000 hours for the year, but the discretionary profit sharing contribution has not yet been decided upon, can the plan be amended to exclude the HCES?

[rcline46]

Once eligibility for a contribution has been satisfied, it is considered accrued, and you cannot amend the benefit out. If the plan had an end of year rule, then you could name the HCEs out. If only 1000 hours, and they have 1000 hours, then you are stuck.