JPIngold Posted December 22, 2015 Report Share Posted December 22, 2015 I have a client who is being told they have to execute the PPA restatement of their safe harbor 401(k) amendment by the end of this calendar year with a 1/1/2015 effective date because the original effective date of the plan was 1/1/2009 and that plans must be restated every six years. I am telling the client that the IRS is none too keen on retroactive safe harbor plan amendments and their deadline to adopt the PPA restatement is 4/30/2016, so they should just make their amendment effective 1/1/2016. [We are actually recommending they make some changes to the plan's design anyway, so 1/1/2016 makes sense.] I am trying to convince them that the six year clock is only in reference to the restatement deadlines and not the date of your last restatement (or in this case, the original adoption of the plan.] The provider is insistent that they have to adopt BOTH the 1/1/2015 plan and then they will do the 1/1/2016 amendment. The safe harbor notice timing issues aside ... has anyone heard a stance like this on the "six year clock"??? ETA Consulting LLC 1 Link to comment Share on other sites More sharing options...
Create an account or sign in to comment
You need to be a member in order to leave a comment
Create an account
Sign up for a new account in our community. It's easy!Register a new account
Already have an account? Sign in here.Sign In Now