Deferral limits

[Guest jetfaninmn]

We have a plan on a Principal document - their former TPA. It is update, so we are continuing to use the document. There is a limit on the deferral of 10%. The sponsor want to eliminate it for 2005. Is an amendment we draft to change this to eliminate the limit sufficent enough for a document that we do not sponsor?

[WDIK]

Assuming that

1) the adopting employer is still allowed to utilize the document sponsored by Principal; and

2) the amendment changes a provision elected by the adopting employer (in other words it does not change the language of the prototype or volume submitter document itself)

it seems feasible to draft an amendment changing that provision, although the effective date of the change to the deferral limits depends some on the wording of all applicable provisions. (In other words, be cautious of a retroactive amendment.)