Change in Comp Limit after EGTRRA Amendment

[Guest CRC02]

A plan sponsor does not want to adopt the $200,000 compensation limit enacted by EGTRRA within the EGTRRA good faith remedial amendment period, but may want to adopt the higher limit later. If the plan prospectively adopts the $200,000 limit after the EGTRRA remedial amendment period ends, will this violate 401(a)(4)? The change will only benefit the highly paid (it will only affect those with comp over $170,000).

Supposedly there is some guidance out there regarding the limit change and 401(a)(4), but I haven't been able to find it!

[david rigby]

It is my understanding that a later amendment will require testing under 401(a)(4).

[Guest CRC02]

Thanks for your quick response. What is the basis for your understanding?