Auto-enrollment grandfathering

[Belgarath]

I've seen no formal guidance on this question. Grandfathering for the SECURE 2.0 auto-enrollment for plans established prior to 12/29/2022.

If a plan with a plan year of 11/1/2022 to 10/31/2023 is signed prior to the end of the plan year, (i.e. prior 10 10/31/2023) is it considered "established" for purposes of the grandfathering, or must the document have been SIGNED prior to 12/29/2022?

Any formal guidance that I've missed? Otherwise, I've seen differing opinions...

[C. B. Zeller]

IRC 414A as added by SECURE 2.0 sec. 101 applies to any cash or deferred arrangement established on or after 12/29/2022. While a profit sharing plan could have a retroactive effective date, a CODA which is part of a profit sharing plan can not. In other words, the effective date of the 401(k) feature can't be earlier than the date on which the plan document was signed, and the effective date of the 401(k) feature is what controls whether mandatory auto-enrollment applies (with the caveat that this is my best reading of the law as written, since IRS has published no guidance on this yet).

Does that answer your question?

[Belgarath]

Yes! Monday morning brain cramp - wasn't thinking clearly...the 401(k) feature isn't effective until the plan year beginning 11/1/2023 anyway.

Duh. Sometimes I scare myself.