RMD amendment

[k man]

Has it been confirmed that the IRS will allow sponsors to amend their plans for the new RMD regulations by the end of their remedial amendment period for GUST?

[KJohnson]

2001-82 contained the following regarding the two model RMD amedmments :

In order for a qualified plan sponsor to use either model amendment, it must adopt the amendment prior to the end of the plan's GUST remedial amendment period. Revenue Procedure 2000-27, 2000-26 I.R.B. 272, extends the GUST remedial amendment period for most plans until the end of the first plan year beginning on or after January 1, 2001.

[Belgarath]

Actually, assuming the employer either adopts a document from a sponsor who submitted timely for GUST, or certifies jointly with the sponsor prior to 12-31-01 that they will adopt such document when it becomes available, will have until the later of the following dates:

1. 12-31-2002, or

2. The last day of the 12th month following the month in which the latest of the sponsor's GUST approval letters are issued.

See IRS Notice 2001-42, which modifies Rev. Proc. 2000-20.

[KJohnson]

Belgarath, I agree that you have correctly stated the GUST remedial amendment period for those who have adopted volume submitter plans or prototype plans. I have been operating under the assumption that we have until 12/31/02 to adopt the RMD amendment retroactive back to 1991 for those plans. However, I wonder why 2001-82 just mentions 2000-27 and not the other guidance on the extension of the R.A.P.?

Oh well, I still think that even if you are doing RMD's in 2001 under the new proposed regs, you would have until at least 12/31/02 to amend if you have a V.S. or prototype plan.

[Belgarath]

I think we are basically agreeing. "most plans" will be those of a sponsor that has submitted timely for GUST, and employers who have adopted or certified intent to adopt. So you would indeed have until at LEAST 12-31-02, and maybe later. I was just clarifying the GUST remedial amendment period.