Automatic enrollment amendment

[Guest JackPoint]

Must you adopt a PPA amendment allowing for automatic enrollment that is effective as of 1/1/2008 in order to avoid nondiscrimination testing for 2008? How late in the year can the amendment be effective in order to obviate the testing requirements?

TIA

JP

[Guest amycavanaugh]

On the MHCO-website they say the followingQACA Plan Amendment Question

To start the QACA for 2008, the employer can merely adopt a board resolution.

The key is if you want to turn off the traditional safe harbor, this will require a more comprehensive amendment.

The details of the automatic enrollment arrangement can be clarified in the required notice. That said, I suggest and amendment.

Oh as as far as timing if you do go the amendment route, the notice needs a 30-day window but the amendment is not required until the day before the first day of the plan year.