Client is amending a profit-sharing 401(k) plan for cross tested allocations. He has some money burning a hole in his pocket, so wants to make a contribution before year end.

I've told him that we need an allocation letter before the money goes into the trust, and that he should wait. This isn't sitting well with him.

Any reason not to draft an allocation letter saying "This $XXX is to be allocated to the Partners on a salary ratio"? Later, we'll allocate money to the rank and file, and perhaps more to the partners as well.

I would be wary of allocating to a partner's account without first allocating an appropriate amount to the accounts of the rank and file employees.

NOGO there, No Name. Not Nondiscriminatory.

Agree with Andy, I would test this as a BRF and, the partner being the only participant who benefits from an early allocation, that would not pass. That's assuming of course that the partner is HCE and that there are some R&F NHCEs.