No amendment since 1990...

[Guest RONNIE WASEL]

Plan sponsor is on a prototype document that is a 1990 version. Therefore, it was not amended for the the previous tax laws, let alone GUST and EGTRRA.

Do they need to go through the CAP program to amend for the first period before we amend for GUST, or does amending for GUST the only thing that needs to be done?

Thanks,

Ronnie

[Guest merlin]

By "previous tax laws" do you mean UCA92 (eligible rollover distribution and mandatory 20% withholding) and OBRA93 (reduction in comp limit to $150,000)? If so , I would expect that the prototype sponsor made the amendments. Can you go back to them for help in getting a copy? Was this your client in 1994? If not maybe the prior TPA had the client execute the IRS Model Amendments for UCA92 abd OBRA93.Have the client hunt them up,otherwise they're in the soup.

[Guest RONNIE WASEL]

What I mean is that this client is on a Kemper prototype document from 1990, it is a one person plan with no employees. They are a prospect and we are wondering if the GUST and EGTRRA amendments are all we need to do to get the documents current.

"In the Soup" = Walk-IN Cap or VCP?

[mbozek]

It is my recollection that the IRS issued model amendments for 20% withholding and the a17 changes for M & P plans which did not require formal adoption by the employers who had adopted the plan. The M & P sponsors merely issued the amendments to the employers as an amendment to the existing M & P plan which had received TRA 86 approval. You need to find out if plan received such an approval and the amendents were attached to the M & P document. However, the plan would need to be amended for GUST. IRS has delayed expiration of GUST remedial amendment period for M & P plan adopters until later of 12/31/02 or 1 year after IRS approves gust amendment. If Employer is still using the Kemper plan it can adopt the Gust amendents for the kemper plan after approval by the IRS or adopt a gust approved plan of another ptype sponsor. I think you should contact Kemper to find out the status of their plan for GUST amendments before looking at CAP. You should also review IRS announcement on remedial amendment period for M & P plans on IRS web site.