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They will be reviewing all amendments since the last determination letter. The restatement itself is also an amendment. Many restatements are adopted during the year and effective retroactive to the first day of the plan year. If the IRS is really taking the position that virtually all mid-year amendments to safe harbor 401(k) plans are prohibited, why isn't it mentioned in the guidelines for reviewing plan documents? Adoption of a prohibited mid-year amendment means the plan fails to satisfy the coverage and nondiscrimination requirements for 401(k) plans. That is something they are supposed to be looking for before issuing a determination letter. 1.401(k)-3(e) says "In addition, except as provided in paragraph (g) of this section or in guidance of general applicability published in the Internal Revenue Bulletin (see §601.601(d)(2)(ii)(b) of this chapter), 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." 1.401(k)-1(b) has the coverage and nondiscrimination rules.

Well that's the best darn observation on this topic I've heard yet.