Leaderboard

If I do the amendment, and the IRS fines them $10,000 because they added auto rollovers mid-year (like my example?), they're going to sue me. I suppose to your point I should tell them in my letter, "the IRS has taken a bizarre position, and solely because you would like to add automatic rollovers (scoundrel!) your plan could be disqualified if you execute this amendment. We suspect the IRS is continuing its crusade against republicans in all walks of life, knowing that small business owners (who this rule overwhelming discriminates against) are most commonly affiliated with the republican party."

Although I tend to think there really is not as much change as Sungard suggests (not including their informal conversations with the IRS). “Except as provided …, a plan will fail to satisfy the requirements of section 401(k)(12) … and this section unless plan provisions that satisfy the rules of this section are adopted before the first day of the plan year and remain in effect for an entire 12-month plan year. In addition, except as provided in [the exiting rules], a plan which includes provisions that satisfy the rules of this section will not satisfy the requirements of §1.401(k)-1(b) if it is amended to change such provisions for that plan year.