Auto Rollover amendments

[Guest sherrycash]

For December 31 plan year ends, when is the "best" time to amend the plan? Just wait until later in the year?

Thank you,

Sherry

[WDIK]

What is the purpose of the amendment?

[Guest sherrycash]

To amend for new automatic rollover rules eff 3/28.

[WDIK]

Sorry sherrycash. I've got to do a better job of reading the thread titles, especially on a Monday.

It is my understanding that even though a plan with a 12/31 year end has until 12/31/2005 to adopt the amendment, the plan must still operate based on the automatic rollover rules.

I don't know if there is a best time, but personally I would recommend completing the amendment sooner rather than later purely to avoid the potential problems of procrastination.

[Everett Moreland]

My perspective from working with individually designed plans is to do the amendments now. You might discover items that need to be resolved now rather than on 12/31/05.

[Guest jefe96]

Besides the amendment, how is everyone going to handle the actual rollover? The amendment is the easy part and for a calendar year plan you have until 12/31/05. But, in 2 weeks you will still need to comply with the reg, which is to rollover any forced distributions instead of a lump sum. Can anyone recommend any financial institutions that are willing to accept this kind of business? And also fairly easy to work with? Also, is everyone restating the 402(f) notice, or simply adding an addendum? Since notice has to be given to the participant also.

[Guest dogsbody]

Corbel is providing its clients with a link to a company called ProNVest that works with E*TRADE. Apparently E*TRADE pays ProNVest for access to the accounts. A participant's access to the rollover once it goes to E*TRADE is limited to phone or internet, I believe. I have no expericne with either E*TRADE or ProNVest, so I have no idea if this will be a useful option for anyone. Link: http://www.corbel.com/products/pdf/ProNves...verSolution.pdf