metsfan026 Posted November 3 Posted November 3 What is the required time necessary to amend a matching contribution? Currently it is a mandatory match, but they want to switch it to discretionary (it is not a Safe Harbor Match). Do they need to give more than 30 days notice? In other words do they still have time to make the change for 2026?
CuseFan Posted November 3 Posted November 3 If just an "ordinary" match you can amend to stop for any match that has not yet been earned under the terms of the plan. Therefore, if changing for 2026, just need to amend prior to 1/1. There is no advance notice as far as I know. Lou S. 1 Kenneth M. Prell, CEBS, ERPA Vice President, BPAS Actuarial & Pension Services kprell@bpas.com
Popular Post Ilene Ferenczy Posted November 4 Popular Post Posted November 4 Just to be clear ... you cannot change an allocation formula (or contribution formula, in the case of a mandatory match) once someone has earned the right to the allocation. So, for example, if someone needs 1,000 to share in the allocation, you have until that occurs to modify the allocation formula (usually considered to be about 5 months into the plan year, but if you have a company that has lots of overtime, that may be too late). If there are no allocation requirements in the plan, then you have to amend before the beginning of the year. If the plan has a last day requirement, people con't earn the right to the contribution until the last day of the plan year, so you have until then to amend. Hope this helps ... David D, Lauren0507, Nichol and 3 others 6
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