PS allocation condition beyond plan year end?

[WCC]

Please consider the following:

Calendar year DC plan with a non-elective discretionary employer contribution. The plan document is written with the following allocation condition to receive the non-elective:

"To be eligible to receive such Non-elective Contribution, the Participant must be employed by the Company on the date the Company makes the Non-elective Contribution."

The plan administrator will fund the contribution on March 1, 2024 for the 2023 plan year to only eligible participants actively employed on March 1, 2024.

This is a new one for me, I was under the impression that you could not have an allocation condition beyond the end of the plan year. Am I wrong? Do the regulations allow for this type of allocation condition? Or can the word "makes" be interpreted differently (e.g. "makes" means the plan year to which it is allocated, or does it mean the date money is deposited to the plan)?

Thank you!

[Belgarath]

Here's a somewhat similar discussion that may be helpful. I'm not venturing any opinion. 

 

[CuseFan]

Yes, I remember the discussion. I think there are potential 415 and deduction issues as noted in the prior thread and there is a better way to accomplish (individual allocation groups). Also, if that is language modification to a pre-approved document and has not been submitted, you may not have reliance on opinion letter.