RMD-are the model amendments in Rev. Proc. 2002-29 mandatory?

[Guest Donaldson]

If a DC plan generally provides that all distributions under the plan must comply with Section 401(a)(9) and the regs thereunder, does anyone know if the model amendments found in Rev. Proc. 2002-29 must be adopted? Does every plan have to adopt these model, tack on amendments? If not, which plans are not required to do so?

Thank you for your comments.

[Blinky the 3-eyed Fish]

As stated in that promulgation, DC plans do need to be amended. I believe the amendments had to be done by 12/31/03. Now along came Notice 2003-2 and Rev. Proc. 2003-10 which delayed the requirement for DB plans only.

Sorry, didn't read the question better.

[Guest Donaldson]

I agree that the deadline for amending DC plans was 12/31/03. However, rev. proc. 2002-29 states that whether or not a plan has to be amended depends on the terms of the plan. So, if a plan states that all distributions must comply with Section 401(a)(9) and the regs thereunder, must it still be amended by adopting the model amendments? Or, is the plan ok because it provides that it will follow the statute and regs? The rev. proc. does not shed any light on this.

Thanks again.

[Everett Moreland]

1.401(a)(9)-1 Q&A-3 describes what a plan document must state to satisfy 401(a)(9) (which is well short of the model amendment). If a plan is amended to comply with those requirements and the amendment is submitted for IRS approval within the remedial amendment period you will be safe. For qualified plans I don't use the model amendment. For a document I don't plan to submit to the IRS (such as a 403(b) custodial agreement) I might, out of perhaps too much caution, use the model amendment.

[Guest Donaldson]

I was looking at that regulation earlier today. Thank you for your thoughts; I really appreciate it.