Guest PRafferty Posted June 17, 2002 Posted June 17, 2002 I have a client who was a corporation and started a 401(k) plan 1/1/2002 with a short plan year ending 6/30/2002. He now decided to become an S-corp and will now have a short financial year of 7/1/2002 to 12/31/2002. I think it would make sense for him to have the financial year and 401(k) year-end be the same but is there any restrictions to have two short plan years? Thank you for any help.
Guest pensionadmin Posted June 17, 2002 Posted June 17, 2002 I don't think there's any problem with 2 consecutive short plan years. If you change a plan year and have had a change in the plan year in any of the previous four years, you don't have automatic approval of the change and must file Form 5308.
david rigby Posted June 17, 2002 Posted June 17, 2002 Form 5308 http://www.irs.gov/pub/irs-pdf/f5308.pdf I'm a retirement actuary. Nothing about my comments is intended or should be construed as investment, tax, legal or accounting advice. Occasionally, but not all the time, it might be reasonable to interpret my comments as actuarial or consulting advice.
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