Final 401(k)/(m) amendments

[MarZDoates]

If I have a 401(k) plan that runs from November 1, 2006 though October 31, 2007, does that mean that we have until October 31, 2007 to amend for final 401(k) regs?

[Bob R]

Generally, that is correct. There may be exceptions - 411(d)(6) anti-cutback issues may require an earlier adoption. And, you may have a longer period based on the due date of the employer's tax return for the year beginning in 2006. So, it really depends but in most cases, the last day of the plan year beginning in 2006 is a safe date.

[Santo Gold]

If I 401k plan has a 6/30 plan year, does that mean it should have been amended by 6/30/2006?

[MarZDoates]

If I understand correctly, if your 2006 plan year BEGINS July 1, 2006, then you have until June 30, 2007 to adopt the amendment.

[wsp]

If I understand correctly, if your 2006 plan year BEGINS July 1, 2006, then you have until June 30, 2007 to adopt the amendment.

In the scenario above would the effective date of the amendment be July 1, 2006 or is it retro to January 1? Or does it matter?

[Guest allisonperry]

Can anyone point me in the direction of IRS guidance stating that 401(k) plans must be amended to comply with the final regs by the end of the 2006 plan year? I've found the provision stating that the regs are effective for the 2006 plan year but cannot find anything regarding the deadline for the plan document amendment.

[Guest BobK]

IRS Notice 2005-95 (Section IV) states that plans must be amended for the Final 401(k)/401(m) regulations by the last day of the 2006 Plan Year

Hope this helps

[jpod]

I believe that the deadline for amending to adopt DISCRETIONARY elements of the 401k/401m regs. is the last day of the 2006 plan year, but otherwise the deadline is dependent upon the employer's cycle under the new regime.