RMD Final Reg Amendment

[nancy]

A plan sponsor timely adopted for GUST but failed to adopt the RMD final reg amendment by 12/31/03. Where are we now? Non-amender? Help!!

[Guest lvegas]

As a follow-up which may help to flesh this issue out, must a plan that has obtained a favorable GUST determination letter and is in compliance with the final RMD regs also adopt a "snap-on" RMD amendment if the plan text already incorporates 401(a)(9) and the regulations thereunder by reference?

[Guest M. Martin]

I've searched & searched with no luck for similar threads on this topic. Has anyone else encountered a take-over plan where the RMD amendment wasn't adopted by 12-31-03?

The plan in question is on a prototype and was timely amended for GUST & EGTRRA but can't locate their RMD amendment. In the adoption agreement there is an item for Minimum Distributions that reads: "The proposed Code Section 401(a)(9) Regulations issued in January 2001 apply with respect to distributions under the Plan made on or after January 1, 2001 unless a later date if specified below..."

Just wondering what type of adverse consequences might be involved when a plan contains the temporary reg. language & has been operating accordingly but doesn't have proof of the final MRD amendment being adopted.

Rev. Proc. 2002-29, Section 2 .08 contains language concerning a remedial amendment period during which any needed retroactive amendments can be made - would this apply in this situation?

Any input would be greatly appreciated.

[g8r]

If the RMD amendment was not adopted timely, then you can only correct under EPCRS as a non-amender.

[Guest saber]

Check with your prototype sponsor and ask for a copy of their model 401(a)(9) amendment. The prototype sponsor should have adopted it for the employers.

[Guest lvegas]

Could Rev. Proc. 2004-25, which extends the remedial amendment period for new plans and plan amendments to the end of the remedial amendment period for EGTRRA, be interpreted to permit a non-amender to amend w/o going through EPCRS?

[g8r]

Nope.

See the IRS web site:

http://www.irs.gov/retirement/article/0,,id=122798,00.html

[Guest lvegas]

How expensive is EPCRS for this type of failure and can it be done anonymously? And again, is EPCRS necessary if the plan already incorporates the 401(a)(9) regs by reference?