Advance Notice for Amendment

[mming]

If a plan is being amended to eliminate its loan provision, is there a minimum number of days that must elapse between its adoption and effective dates? Also, is it acceptable to notify the participants no later than the amendment's adoption date? My understanding of protected benefits under 411(d) is that a participant loan provision is not considered to be an optional benefit and can be removed from a plan, as opposed to, e.g., an inservice distribution provision. All help is greatly appreciated.

[ETA Consulting LLC]

Your understanding is correct. There are only a few provisions that require an advanced notice (i.e. elimination of safe harbor 401(k)). I know the elimination of periodic payments used to require advanced notice, but doesn't currently require one. So, you would be safe with eliminating loans and hardships without advance notice.

Good Luck!