Date: Fri, 10 Mar 2006 10:46:05 -0600
From: woessner@gmail.com
Newsgroups: misc.invest.financial-plan
Subject: 401k Profit Sharing Contribution Rules
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I'm not sure if this is the right place to be posting, but here goes...

I've been tasked to investingate setting up a 401k plan at my office.
After a few lunch meetings, I'm pretty sure what we want, but I have
one lingering question.  The owner would like to make profit sharing
contributions but only after 3 years of service.  Is this possible or
would it likely fail the compliance tests?

As an alternative, I told him we could set it up so that an employee
would only be vested in the profit sharing contribution after 3 years,
but he said he would prefer not to make the contributions at all.

Background: We're a small research company with about 20 employees.
About half of our employees are highly-compensated.  We have only 2
non-technical employees so the boss would like to keep this simple.

Thanks in advance for any advice and suggestions.

--Bill