Does a plan amendment have to be sent to the IRS

[Guest Carl C]

The company I work for has a self directed 401k, only a handful of participants left. The original plan documents from the plan provider were pre-approved by the IRS, but again adopted by us as a self-directed 401k plan. The plan did not allow for loans, nor did it allow for in service distributions other than hardship distributions. We are considering amending our plan to allow participants to borrow from the plan, and / or to allow in service rollovers to other qualified plans without incurring taxes or IRS penalties, either to an IRA or a 401k from another employer, prior to 59 1/2 (some of our employees have two jobs, and their other employers have 401k plans).

The question is, can we just amend our plan in writing, mid-year, to allow these options without filing the amendments with the IRS, or do we have to file these amendments with the IRS?

As always, I've valued the responses from this board as the most professional and informed, over the many years, even when the questions are posed from a novice such as myself.

Carl C

[QDROphile]

You cannot have rollovers without distributions. Elective deferrals cannot be distrbuted before age 59 1/2 to someone who is still in service. Your inclinations are dangerous to the qualification of the plan an dangerous to the fiduciaries of the plan. You need direct personal help in implementing your ideas properly. The provider of the pre-approved document is a place to start and the amendments will probably be in forms consistent with the pre-approved plan. That is usually the company that provides record keeping services to the plan.