We have a calendar year 401(k) profit sharing plan that we are amending and restating onto our EGTRRA document. The GUST document did not have a last day or hours requirement in order to receive an allocation of the (discretionary) profit sharing contribution; however going forward the client would like to implement a last day & 1,000 hour requirement to receive an allocation. Is this permissible? (I assume it is, but...) Are there any notice requirements (e.g., 204(h)) or can we just move forward with the restatement and make this new provision effective for the current plan year (or would we have to wait for 2010 for the new provisions to be effective)?

Any input would be greatly appreciated.

Thanks!

This question has been asked 1,000 times on this board. I recommend a search.

It can be done, but there are limitations about the timing.