retroactive plan amendment

[Gary]

a husband and wife plan.

They employed their daughter from 2006 through 2009.

they want to amend plan such that a year of service requires only 50 hours instead of 1000.

and this amendment is effective 1/1/2008 (adopted in restated egtrra plan).

the intent of the amendment is to have daughter enter plan 1/1/08, receive accruals from 2008 and reflect in 2011 valuation.

i am thinking that the amendment (or actually plan provision in restatde plan) should specify that the provision also applies to former employees, otherwise I am not sure if it would apply to a former employee who previously left without entering the plan.

thoughts?

thanks

[frizzyguy]

Before wheel spinning commences, were their past employees?

Depending on that, I have more questions.

[Gary]

no, the only past employee was the daughter and a son worked for two months so he would never enter plan. thanks

[frizzyguy]

Then I wouldn't worry too much about it. Amendments can't be discriminatory but because they're all HCE's, in my opinion go nuts. If you want to include them, include them.