Code Section 4972©(7) (as amended by EGTRRA) allows employers to contribute up to the full funding limit. If this amount is greater than the maximum deductible amount, the employer can't deduct it but will not be charged the 10% excise tax. The rule says the employer must "elect" this. How does this election work? Is there a formal form? Is any documentation needed? Or, does "elect" simply mean "choose?"

At the risk of sounding too simple, I would simply suggest that the Plan Sponsor
write in their corporate minutes what they intend to do. A reference to the code
section would add support to their election.