change plan year end

[wsp]

I have a client that changed it's corporate structure, moving all employees to a new entity. The ownership structure is still the same, however the new entity has a 12/31 year end while the old entity and it's plan had a 6/30 year end. Now, of course, they want to change the plan year end to 12/31. They are aware of the vesting implications and also plan on making an employer contribution for the short plan year so employees do not have a cut back, although the profit sharing contribution is a discretionary one.

Question 1....Is an amendment sufficient to change the plan year end?

Question 2...Is it too late to do this?

Question 3...If not, would the effective date of the amendment be 12/31/2002? or July 1, 2002?

[chris]

I am assuming all issues have been handled re the new entity adopting the old entity's plan....... As to your questions, 1. an amendment would be sufficient; 2. it would have to be adopted prior to the end of the short year (7/1/02 - 12/31/02); 3. effective date could be 7/1/02.