A 401(k) Plan currently has a 6 year graded vesting schedule for the Profit Sharing Contribution.
The Plan Sponsor wants to amend the Plan to read "Employees hired prior to and including 12/31/06 are 100% vested in the Profit Sharing Plan".
Is this allowed?
Full Version: Vesting - 6 year Graded
QUOTE (Alex Daisy @ Apr 8 2009, 07:33 AM) 
A 401(k) Plan currently has a 6 year graded vesting schedule for the Profit Sharing Contribution.
The Plan Sponsor wants to amend the Plan to read "Employees hired prior to and including 12/31/06 are 100% vested in the Profit Sharing Plan".
Is this allowed?
The Plan Sponsor wants to amend the Plan to read "Employees hired prior to and including 12/31/06 are 100% vested in the Profit Sharing Plan".
Is this allowed?
It's not a cutback, so no 411d6 problem.
Will this amendment, given its timing, disproportionately favor HCEs? If so, then it could be discriminatory. 1.401a4-5.
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