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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"???

Not saying it can't be done, but care is required. I'd be worried about eliminating the risk of forfeiture and causing early taxation. Need a tax lawyer for this one.

AMDG, Thanks very much. Do you recall the basis for others disagreeing with you? Although the revised guidance is still not as clear as it might be, it does seem to suggest a pass for general amendments to prototypes. Seems like too with the demise of the 5-year submission cycle, etc. that this would be a logical read as well. I'll be sure to ask my local district office as well when they return my call regarding a VCR question from several years ago.