The Mechanics of Making Contributions to Cross-Tested Plans (Posted April 22, 2003) Technical Tip 95: The following question and answer were from the IRS Q&A Session at the 2001 ASPPA Annual Conference: If Employer pre-funds its cross-tested profit sharing plan that allocates using defined groups, does the employer need to do a letter of instruction to the trustee for every deposit? If so, does the timing of the allocations need to be nondiscriminatory as well? Response: When the money goes in the plan, the plan sponsor must designate to which group the dollars belong. In addition, timing of contribution (all money for HCEs goes in at the beginning of the year and NHCE money goes in after the year is over) can be a benefit, rights, and features (BRF) issue. View all Tips © 2012 Reish Luftman Reicher & Cohen, a Professional Corporation Important notice: Answers are provided as general guidance on the subjects covered in the question and are not provided as legal advice to the questioner's situation. Any legal issues should be reviewed by your legal counsel to apply the law to the particular facts of your situation.