IRC 410(b)

Plainly read, it would appear the secure act amended 401(b) to allow a sponsor to adopt a profit sharing plan after the end of the sponsor's tax year. But what if a sponsor adopted a 401(k) plan in 2021 to be effective in 2021, but decided to amend the plan to be effective in 2020 (prior to the tax return deadline) so that they could make a profit sharing allocation for 2020.

Kosher or not Kosher?

without looking at anything, i'm pretty sure that's not kosher. But they could still adopt a PS plan for 2020 and merge it into the 401(k) plan in 2021.

10 minutes ago, Purplemandinga said:

Plainly read, it would appear the secure act amended 401(b) to allow a sponsor to adopt a profit sharing plan after the end of the sponsor's tax year. But what if a sponsor adopted a 401(k) plan in 2021 to be effective in 2021, but decided to amend the plan to be effective in 2020 (prior to the tax return deadline) so that they could make a profit sharing allocation for 2020.

Kosher or not Kosher?

Why risk it?Adoptt ew.

If I didn't know better I'd say you two were related. Presson, Preston. Coincidence? Its a conspiracy!

The merging of a new plan seems like a possibility. Is there anything regarding the IRS's permanency guidelines, in relation to the retroactive establishment of a plan only to merge it into the current plan, that would make you hesitate?

13 minutes ago, Purplemandinga said:

If I didn't know better I'd say you two were related. Presson, Preston. Coincidence? Its a conspiracy!

The merging of a new plan seems like a possibility. Is there anything regarding the IRS's permanency guidelines, in relation to the retroactive establishment of a plan only to merge it into the current plan, that would make you hesitate?

Not a thing.