"We have a client who signed a plan amendment to change their match computation period from per payroll to annual with a true-up provision, but they signed the amendment with the wrong intended effective date. They intended to start the true-up for the plan year 2024 (for true-up to be paid in early 2025), but instead signed the amendment effective 01/01/2023. They don’t want to fund the true-up for 2023 as they have not budgeted for this.

"To fix, we asked the RK to draft a document with effective date 1/1/23 with the original match computation of per payroll, while also drafting a second document effective for 1/1/24 with the change to annual with the true-up.

"The recordkeeper is reluctant to process these as they say this could be viewed as a cutback of benefits. Do you agree with that? The plan has never funded a true-up and have been paying their matching contributions per payroll as they always have. Their match is also discretionary, the formula is not stated in the plan document. It seems like their plan document allows some flexibility."

"Suppose a participant terminates employment on (X) date, and receives final paycheck 3 days later. Included in that final paycheck is a 'severance' payment that would not otherwise qualify as 'post severance' pay. Because the paycheck date is AFTER the severance date, this is considered under the post-severance rules, and is excluded. Now, suppose the final paycheck date is, in fact, the day before the actual severance date. Now it just falls under the regular rules, and if plan defines as W-2, then it would be included, right? You can't call it post-severance if it is pre-severance, agreed? Now for the real question. If paid ON the actual (X) severance date, would you classify as pre or post severance? Any 'gray' on this -- for example, if it was paid as a separate check instead of being included in one big, final check?"