GUST Remedial Amendment Period, current vs. prior year testing choice?

[John A]

1. Did Notice 2001-42 effectively extend the GUST remedial amendment period for prototype filers to 12/31/02? If a prototype is approved after 12/31/01, is the deadline still 12 months after the day approval is received?

2. Can a plan sponsor that uses a prototype still freely choose current or prior year testing for 2001 and/or 2002?

[Guest Paul Hinderegger]

John, with regard to your second question, based upon my reading of Notice 2001-42, I tend to agree that M&P plan sponsors may freely choose the testing method (current or prior) for the 2001 and 2002 plan years since the remedial amendment period is effectively extended to 12/31/2002.

However, if a plan selects the current year testing method for 2002, are they stuck with it for the next 5 plan years or can they use the prior year method in 2003? Can anyone confirm?