Calendar Year Election

[Guest Pension Girl]

Sorry if Tom gets this! One more question. The sponsor has a plan year ending 6/30. For the 6/30/09 plan year, if they do not elect to use the calendar year then they will have an HCE since the 2008 HCE theshold for 2008 is $105,000 vs $100,000 for 2007. Question - is it too late to amend the plan? The 11g deadline is 4/15. I see that PPA requires the top paid group election to be made by end of plan year.

What about the calendar year election?

[Tom Poje]

Rev Proc 2005-66 5.05(3) states that a discretionary type of amendment should be adopted no later than the last day of the plan year for which the amendment is effective.

top paid group elections, prior year/current year testing are certainly not required, so these types of amendments should probably be in place before the end of the plan year (as oppossed for instance, changes required by EGTRRA which are added after the fact)