timing of gust re: 2002 limits = ?!

[Guest David M. Lipkin]

An ASPA speaker here in Pgh. recently stated that there is a need to restate plans by an "earlier than usual" date, for things like:

- $160K DB limit used during 2002

- 25% P/S limit used during 2002

- no more mulitple use for 2002

So, for example, if your regular due date were 5/31/03 (based upon all the complex rules, certifications, one year rule, etc.), that you might have an earlier due date (such as 12/31/02, or the Er's tax return due date for '02, perhaps 3/15/03) to take advantage of these swell provisions.

Is this true? Any guidance w/b appreciated.

David

[rcline46]

All those swell things for 2002 have ABSOLUTELY NOTHING TO DO WITH GUST! ! ! !

These things are all related to EGTRRA and you can do an EGTRRA amendment before you do the GUST restatement. However you will have to REDO the EGTRRA amendment with GUST or you lose it.

[Guest David M. Lipkin]

Sorry for the inexact thinking.

I meant, assuming that one wishes to do GUST & EGTRRA together, does this indirectly cause an acceleration of the due date?

David

[Blinky the 3-eyed Fish]

David, a good faith EGTRRA plan amendment is timely if it is adopted no later than the later of (i) the end of the plan year in which the EGTRRA change in the qualification requirements is required to be, or is optionally, put into effect under the plan or (ii) the end of the GUST remedial amendment period for the plan.

Adopting EGTRRA provisions does not accelerate anything with with regard to the GUST restatement deadlines.