Anyone receive a 415 amendment?

[smm]

I understand that some TPAs (who quite frankly don't understand 403(b) plans) are insisting that their clients adopt a snap-on amendment to comply with the 415 regulations? Has anyone seen one of these? What are you doing about them?

[Guest Robin.Wolf]

I'm curious as to why you are asking. Do the final 415 regs not apply to 403(b) plans, or do you have a problem with the "snap-on" nature of the proposed amendments, or something else?

[Guest mjb]

What is the purpose of adopting a snap on amendment for Q plans? 403b plans are subject to different rules e.g. all 403b contracts of different employers must be aggregated under 415c and 403b contributions must be aggregated with contributions to any qualified plan in which the employee has an ownership interest of more than 50% in the employer who sponsors the plan (HR-10, SEP or solo 401k plan). You need to review reg. 1.415(f)-1(f)(2).

[smm]

Thank you, MJB, my sentiments exactly. This amendment was generated by a TPA who thinks a 403(b) plan is a 401(k) plan, and is "insisting" that the amendment be adopted to comply with the changes necessitated by the 415 regulations for the treatment of certain types of "severance" payments for qualified defined contribution plans. On a related note, those components of the 415 regulations have been included in the 403(b) regulations and it appears to me, at least, that they apply to all 403(b) plans without the need for the plan to affirmatively elect to apply them (cf. 401(k) plans). Any additional thoughts are appreciated.

[John Feldt ERPA CPC QPA]

I agree. With a newly revised written plan requirement deadline coming up soon anyway, perhaps it can be incorporated all into the new written plan, there is no need to adopt a separate 415 amendment.