Plan sponsor wants to make several non-required amendments for 1999. I

[Guest m thom]

Plan sponsor wants to make several non-required amendments for 1999 (e.g., change eligibility age, maximum contribution pct). None of the amendments involves a potentially disqualifying plan provision.

Question: Is it allowable to simply operate in 1999 as if the amendments were in place and then include these provisions when processing the required amendments in 2000?

I ask the question because it appears that this procedure is allowable in the case of potentially disqualifying plan provisions. In other words, is there a distinction to be made between amendments that relate to disqualifying provisions and amendments that do not, when it comes to using the extended deadline for required amendments?

[Guest]

I think you can do it retroactively up to the year's tax filing deadline.

[John A]

Yes, I believe there is a distinction to be made. You cannot use the remedial amendment period for non-required amendments. You must instead look to the amendment timing rules that are in place without regard to a remedial amendment period.

I believe it is fairly clear that you could adopt a benefit enhancement amendment up to 2 1/2 months after the end of the plan year. Any amendment that is not an enhancement should be checked to be sure it is not taking away something the participant has already earned (be careful with eligibility changes).