Corrective Amendment

[cpc0506]

We have a client that has allowed participants into the match portion of the plan earlier than the document allows.  We are doing a corrective amendment for 2016, but can we also do a corrective amendment NOW for 2017?  My concern is that I thought that a corrective amendment was only available after the plan year ended.

Client has changed the entry conditions for match to tie to those of the deferral with an amendment effective August 1, 2017.  But there is still the issue of the period from 1/1/17 to the date of amendment.

[Mike Preston]

It requires an amendment.  And if the amendment isn't late per 2007-44 standards it isn't a corrective amendment.  Why do you need it to be corrective?

[CuseFan]

exactly. discretionary amendments can be adopted any time until the end of the PY provided they do not cut back benefits. the 8/1 amendment could have (should have) been made effective 1/1.

[Luke Bailey]

Agree (with everyone), 2016 amendment is corrective, 2017 timely/current, as per Rev. Proc. 2007-44 as Mike Preston points out.