restate or amend

[wsp]

current plan allows for deferrals and match...

Plan is intended to become safe harbor, given the sheer number of changes that need to be made to the document and SPD, wouldn't it be safer to simply restate the document? Scary as it sounds...in 13 years I've never had to convert a plan...always restated as there were multiple other changes the clients wanted to make as well. It's not so simple as adding the SHMAC or SHNEC formula language is it? Since neither is guaranteed, I'd imagine that you still need all the ACP/ADP language to remain in the document.

Also, do you need a material modification letter if you restate? or is it enough to provide everyone with new SPD?

[Leopurrd]

here are the basics:

1. If you restate you provide an updated SPD, if you amend you provide a SMM.

2. If you plan on restating or amending, you need to do so soon - your final day for passing out a SH notice is 11/30

3. SHMAC is required to be in the document

4. SHNEC can either be flexible or required. required would be in the document, flexible would not. (with flexible you give out a maybe notice 30 days prior to plan year, and then distribute another notice by nov 30 of the actual plan year saying "yes, we will contribute")

5. ADP language needs to be in the document, only showing current year testing method. If you put a SHMAC or SHNEC into your document, you MUST make the contribution unless you have a business hardship, merger/acquisition or termination.

I think I've covered the basics, but I'm sure there will be something I've forgotten addressed in additional posts.

As an FYI, Whenever we have added the SH to a plan, we generally restate because of so many changes to the SPD - its easier than typing it all in an SMM.