Deadline for amendment increasing benefits?

[Guest Mark Draa]

Are there rules analogous to 412©(8) for amendments INCREASING benefits? What is the deadline, anyway?

2.5mos > PYE?

Tax Return Filing Date?

Tax Return Deadline (assuming refiling)?

Other?

TIA!

Mark

[Blinky the 3-eyed Fish]

The answer to your question depends on the context to which it is applied. 412©(8) is a rule whereby an amendment to the plan, if made within 2 1/2 months after the plan year, can be retroactively applied to the first day of the prior plan year and considered for the actuarial valuation and correspondingly, the deduction available for that prior plan year. The same rule applies for this purpose no matter if increasing benefits or decreasing prospective benefits.

Now if you just want to increase benefits, but aren't concerned with the valuation, well then this deadline would not apply. It sounds though as if you are applying the question for the former reasonings.

[david rigby]

Agree.

[Guest Mark Draa]

Thanks, guys. Yes, I was referring to having the amendment affect the deduction.

Reading 412c8, the impact of the amendment (increasing or decreasing benefits) is not mentioned, only that accrued benefits cannot be decreased because of the amendment (unless approved by Treasury).

Thx,

Mark