Changing entry dates

[R. Butler]

A top heavy 401(k) plan requires 21 & 1, has quarterly entry dates. Employees enter on the date "nearest" meeting the eligiblity requirements. There are several participants scheduled to enter 10/1. Since the plan is top heavy, it may benefit the employer to amend the plan to allow only a single entry date (1/1). As long as the amendment is adopted prior to the "potential 10/1 entrants" having met the eligibility requirements, I can't see why this can't be done. Am I missing anything?

Thanks in advance for any guidance.

[Medusa]

I do not see the change as a problem. I do see retroactive entry dates as a problem in a 401(k) plan, but no doubt you have found some way to deal with that?

[wmyer]

Can you have only one entry date? I thought that you had to have at least two entry dates.

[R. Butler]

I don't know of any reason you can't have a single entry date. I have seen several plans with single entry dates. Now for 401(k) plans, every document I have seen that requires 1 YOS and has 1 entry date, does provide that you enter on the entry date nearset meeting the requirements, thus no employee will wait longer than 6 months to enter after meeting the requirements.

[wmyer]

Thank you, R. Butler. That makes sense.