Plan Amendments

[Guest cbuxton]

How many amendments to a 401(k) plan are allowed before the IRS states you must rewrite the entire plan?

[RCK]

I don't believe that there is a concrete limit--our Defined Benefit plan has just gotten a 25th amendment. I think that you restate when you are sick of trying to keep track of the amendments.

RCK

[david rigby]

Also depends on the significance of the amendments themselves.

[KJohnson]

If you are talking about seeking a determination letter, I believe in the Rev. Proc. that is issued at the beginning of each year states that if a Plan has four or more substantive amendments a restatement is required. I haven't checked this provision recently, but that is my understanding.

[KJohnson]

This was in 2001-1

.04 A restated plan is required to be submitted if four or more amendments (excluding amendments making only non-substantive changes) have been made since the last restated

plan was submitted. In addition, the Service may require restatement of a plan or submission of a working copy of the plan in a restated format when considered necessary. For example, restatement may be required when there have been major changes in law. A restated plan or a working copy of the plan in a restated format generally must be submitted for a plan that has not previously received a determination letter that takes into account all requirements of GUST. However, see section 3.04 of Rev. Proc. 2000-27 for exceptions to this requirement.

[RCK]

Let me clarify.

We are on Amendment 25 of our plan, but we do use the working copy format. That is, the working copy does have all the amendments carried into the text of the body of the document. So I guess that it is almost a restatement every time.

RCK

[Guest cbuxton]

Thank you for all of your responses!

CDB