Change in Timing of Distributions to Terminated Participants

[chris]

Currently, e/er's plans provide for distribution to terminated participants on or after plan's anniversary date coinciding with or next following termination of employment. E/er would like to change this to as soon as administratively feasible after termination of employment due to recent employee layoff's. Terminated e/ee's want their money and E/er doesn't want to hold it any longer than it has to. Regarding an amendment to the plans is there any problem with having the amendment effective for all participants who terminated on or after the first day of the current plan year, ie, January 1, 2004? Thanks.

[Blinky the 3-eyed Fish]

No, as long as the timing of the amendment doesn't favor HCE's, which is unlikely for this type of amendment.

[chris]

Thanks Blinky.