Short Plan Year Amendment

[Dougsbpc]

We have a 401(k) plan client that had been a 9/30 C-corporation.

In late February they filed to be an S-corporation. As such, their accountant is filing a tax return for the period 10/1/2013 - 12/31/2013.

Their 401(k) plan currently has a 9/30 year end.

Question: can the plan be amended now (April 8, 2014) to change to a short plan year for the period 10/1/13-12/31/13 or must the amendment be prospective?

Thanks

[12AX7]

I don't see how you can do a disrectionary amendment after the (proposed) end of the new plan year. I know it may not be applicable to your situation, but take a look at the instructions for Form 5308, which says in part:

All actions necessary to implement the change of plan year, including plan amendment and a resolution of the Board of Directors, if applicable, have been taken on or before the last day of the short period.

This would be one of the conditions for automatic approval of the change in plan year. I'm not aware of any other guidance. You could however always submit for a FDL if you believe there was good reason and convince the service.