Elimination of Gap income: 2008 or 2009?

[Santo Gold]

I researched a few other posts and understand that gap period earnings are no longer required. But could anyone clarify the following:

1) Is it required that Gap earnings be eliminated, or is it optional?

2) Does WRERA (enacted 12/23/08) eliminate Gap earnings on excess deferrals for plan years beginning in 2008 or 2009?

3) Does PPA eliminate Gap earnings on excess contributions/aggregate contributions for plan years beginning in 2008

4) We currently have in our final 401k/m amendment, and then as part of our 415 amendment, that gap earnings must be calc'd. Based on WRERA and PPA, does that mean we could not use Gap, and documetn that with an amendment at a later date?

Thanks for any assistance

[Tom Poje]

for plan years beginning 1/1/2008 ther is no longer a 'requirement' to include GAP period income. I suppose that implies you can continue to add on GAP income, and I will be glad to offer your clients a better deal on refunds if you choose to continue to charge this extra amount.

note: the change is for plan years beginning 1/1/2008. since testing is not completed until 12/31/2008, for all practical purposes GAP period income is eliminated in 2009 since that is when you would be issuing refunds.

WRERA eliminated GAP under the same conditions.

one such comment and I am sure a search would find many others, this one was from Relius "the IRS stated that employers will not need to adopt an amendment to reflect gap period income on excess deferrals until plans are updated for PPA"