Search the Community
Showing results for tags 'corrective amendment'.
Found 3 results
-
A plan was submitted for a favorable determination letter and the IRS found a problem with the date a participation agreement was signed. We amended to change the company name and EIN and the date signed conflicts with the prior agreement. Can a plan be retroactively amended to correct this type of error once the plan has been submitted? -
Is an amendment to correct for a failure under 410b required to amend the plan for the plan year in which the plan failed or can it extend to future years? The failure in the instant case was with respect to excluded classes and hour requirements. Thanks.
-
We had a Safe Harbor 401(k) plan in 2013. During that year we adopted a Cash Balance plan. It had started with an eligibility window that brought in Employee "A". ("A" is not eligible for the 401(k) Plan in 2013 as of the date of this post.) Turns out, the plans cannot satisfy the Special Gateway requirement because "A" did not get a benefit in the 401(k) plan. The perfect solution would be to adopt a corrective amendment within 9.5 months admitting "A" into the 401(k) plan and giving him the same 7% as all others. Question: Would a corrective amendment that admits a new participant constitute an impermissible (mid-year) amendment of a Safe Harbor plan? I think it is permissible because it does not conflict with anything in the 2013 Safe Harbor Notice. It is also the kind of amendment that IRS says it would be inclined to permit (but to my knowledge, they have not yet expressly permitted). What do you think? Thank you very much.
