discretionary true-up match amendment

Our plan currently has a discretionary true-up match with no allocation service requirements.  Is it ok to amend the plan for the current plan year to add a last day of employment rule or do we have to wait until next year? We want to exclude terminated employees from receiving the true-up match for 2022, if the company decides to make one.  Thanks.

I think if participants terminated in 2022 before the adoption of the amendment (regardless of effective date), they are entitled to the true-up match since they met the allocation requirements (none) before they terminated.

I agree that it would be an invalid retroactive cutback to add a last day of the plan year condition to the true-up match for the current plan year.

Absolutely cannot add a last day requirement for 2022 as every person in the plan has already satisfied the requirement for a discretionary true-up match for 2022 if one gets made. The exception, you could amend to include a last day requirement for 2022 for anyone who enters the plan (plan entry date, not deferral start date) after the later of the amendment's effective date or adoption date. So if plan entry is monthly and the plan was amended this month, you could impose a last day requirement for people entering the plan on or after 8/1/2022. Of course, this assumes your plan is not a safe harbor. If plan entry is dual then you're stuck until 2023.

Agree with all of the "absolutely not" comments.  Discretionary contributions (match or profit sharing) that do not have allocation conditions cannot be amended mid-year to add conditions.  If the requirements had been last day or 500 hours of service, you could amend before any participant has earned the right to the contribution (i.e. before anyone has completed 500 hours).  

Or, setup a new Plan with the "discretionary true-up match" with service conditions and make the match allocation there.  Amend the existing Plan for 2023; then just to be sure you stay away from successor plan issues, wait until 2024 to merge them together.

But, I'm confused by the "discretionary true-up match"; true-up suggests a quarterly, or shorter, determination period, but then you say, if the company decides to make one, which I would take to mean an annual determination.  Or are you saying that the true-up itself is written as being discretionary (a choice I was not aware of in a pre-approved doc)?  If the later, then I'll side with the absolutely not crowd, and that's a sponsor that is wasting dollars to save dimes...

Thanks for the responses - will wait until next year.  To Nate, it's the latter.