Search the Community

Discretionary plan amendment for defined contribution plan is adopted after the end of the plan year during which is became operational. Assume it's operational during 2015 (calendar) plan year and adopted July 1, 2016. Amendment says it's effective 1/1/15. What is the effect? Is the amendment entirely void? or Is the amendment deemed effective 1/1/16 (first day of the plan year in which it was adopted), limiting the operational failure to only 2015? Or - is there another possibility?

An employer maintains an individually-designed plan. This plan is in cycle A. The plan received favorable determinations for the previous intervals of the cycle. The employer will not apply for the IRS's determination this winter. For whatever could be the subject of a remedial amendment, what is the last day for the amendment to be executed? Is it January 31, 2017? Or is it (assuming all relevant tax and plan years are calendar year) December 31, 2016?

I think I have the correct answer to this, but getting it wrong would be costly, so I'd appreciate other opinions. Is a cycle E restatement and submission for the following plan timely if complete by 1/31/16 (cycle E)? For EGTRRA, Plan X was Cycle E plan based on employer EIN. Plan X applied for and received Cycle E letter for EGTRRA. MERGER #1 In 2012, sponsor merged into another organization with EIN ending in "4". So post-change, applicable cycle is D. (Not sure of the merger date within 2012, but this shouldn't matter because neither D nor E was open or expired at any time in 2012). MERGER #2 1/1/15, sponsor merged into another organization with EIN ending in "0". Pre-change cycle is D Post-change cycle is E Unless one of the exceptions in section 11.03 of Rev. Proc. 2007-44 applies, then the post-change cycle (E) will be the applicable cycle. Consideration of 11.03 exceptions... (1) N/A Post-change cycle is not open (2) N/A Post-change cycle has not expired (3) Post-change cycle (E) ends later than the pre-change cycle (D) and and pre-change cycle (D) is open (yes), the plan is permitted to treat the pre-change cycle as the applicable cycle. This sounds optional to me - meaning there is also an option to use the post-change cycle. (4) N/A pre-change cycle is not expired (5) N/A one of the cycles is currently open I think the plan is now cycle E plan again and will be in compliance if restated by 1/31/16 in accordance with the 2014 cumulative list. We intend to file for a letter. The plan could have elected to use Cycle D, but wasn't required to. Anyone disagree? Input appreciated!