Final 401(k)/401(m) Regulations Amendment

[Guest ebs24502]

If a plan terminates in 2005, but the assets are not entirely distributed until 2006 or later, is the Final 401(k)/401(m) Regulations Amendment needed?

[namealreadyinuse]

It sounds like the "proposed" date of termination was in '05. If that holds up, you just have to amend the plan to be current through that date even if the last assets are distrubted in '06. You can lose the ability to use the "proposed" date of termination if you don't wind down the plan ASAP (a determination letter buys more time). The IRS concept is wasting trust I believe.

The final regs are option in '05, so if any of these provisions were used, the amendment would be needed. The regs are mandatory in '06 so you won't have to amend for these unless you lose your proposed date.