Retroactive plan amenmdents relating to elective/optional law changes

[Guest Gibson]

Prior to expiration of remedial amendment period, plan sponsor amended plan to incorporate required changes under TRA 86. In operation and prior to amendment, plan sponsor began adding elective deferrals to 414(s) definition of compensation. Plan amendment included a retroactive effective date. Was this improper, considering that the change was elective, rather than required? Can anyone give me any authority?

In reviewing IRS guidance relating to GUST amemdment procedures, the IRS seems to permit plan sponsors to amend their plans on a retroactive basis with respect to certain elective law changes, such as the new 401(k) safe harbors. However, in reviewing similar IRS guidance relating to TRA 86, etc. amendments, the language is not as clear.

Thanks.