GUST restatement date

[Guest Big Show]

Can the effective date of a restated GUST prototype document be later than 1/1/02? My impression is that as long as the document is signed in a timely manner, the effective can be post- 1/1/02. We will be using a "snap-on" schedule for the document to show the effective date of different provisions.

Thanks

[Gilmore]

We have a client with a December 31, 2002 deadline for restatement. It is a 401(k) plan and they are considering amending to a Safe Harbor Plan effective January 1, 2003.

I called the IRS help line to see if one of the following was acceptable so that we could incorporate the restatement and Safe Harbor amendment at the same time.

First choice is to make the restated document effective January 1, 2003, of course making sure that it is signed and submitted prior to December 31, 2002. We have, up to now, used the first day of the plan year, 2002 as the effective date for all our restatements.

I received a favorable DL for a plan with an effective date of July 1, 2002 already.

Second choice is to make the effective date January 1, 2002, and since they obviously did not met the notification requirements for 2002, the plan would need ADP testing, which they were already prepared to do anyway.

The agent on the help line thought that either option would be acceptable, however he lacked the conviction I was hoping to hear.

I would certainly appreciate anyone elses thoughts.

[kocak]

The prototype we use has a place to put the effective date of the safe harbor provisions. I had a 9/30 plan year end we were switching to calendar year in 2003. I did the GUST restatement effective 10/1/02, short plan year for 10/1-12/31/02 and then safe harbor provisions effective 1/1/03 all in same prototype. I didn't submit for a letter though.....

mck

[maverick]

I have a situation similar to Gilmore's. Calendar year plan is on a std prototype and is switching to non-std. We want to add 1,000 hours and employed on last-day provisions to the profit sharing allocation. It's way past the time to add these requirements for the 2002 plan year, so I want to make them effective 1/1/03. Our document provider said to make the restatment effective 1/1/03, but make sure the adoption agreement is signed in 2002. While that sounds like a good idea, using a 1/1/03 eff. date on a GUST restatement doesn't sound "right." What to you document gurus out there say -- GUST restatement 1/1/03 ok???

Thanks.

[Gilmore]

Hey Maverick,

I spoke with DATAIR, our document provider and they said no way date the GUST restatement for later than 2002.

Nothing like swimming in muddy water.

[maverick]

Mr. G:

Datair told us it's okay to do a GUST restatement effective 1/1/03, as long as it's signed in 2002. Guess I'll ask them to clarify, and post the answer.

Signed,

Confused.

[Gilmore]

Mav,

I spoke to Gina at DATAIR on Wed. of this week.

Thanks for checking and I'll await your answer.

[maverick]

Gilmore:

Lanning from Datair said it's okay to do a restatement eff. 1/1/03. Send me a private email and I'll forward his email for your perusal.

Maverick