TRA-86 Remedial Amendment Period for Tax-Exempts

[davef]

Notice 96-64 extended the TRA-86 remedial amendment period for plans of tax-exempt employers to the last day of the first plan year beginning on or after 10/1/97. For calendar year plans, this means that the RAP ends on 12/31/98.

Has this deadline been extended by Rev. Proc. 97-41, which generally deals with the RAP for SBJPA, etc. amendments? Specifically, Sec. 6.05 of the Rev. Proc. reads as follows: "The remedial amendment period with respect to all disqualifying provisions of new plans adopted or effective after December 7, 1994, and all disqualifying provisions of existing plans arising from a plan amendments adopted after December 7, 1994, that causes the plan to fail to satisfy the requirements of Sec. 401(a) as of the date the amendment is adopted or effective (whichever is earlier), will not expire earlier than the last day of the first plan year beginning on or after January 1, 1999."

Many tax-exempt employers set up new 401(k) plans in 1997. This Rev. Proc. appears to say that those plans can be submitted the the IRS by the end of the 1999 plan year. Because this language applies to ALL disqualifying provisions, it appears that it could cover also TRA-86 provisions under existing tax-emempt employer plans that are now being restated.

Am I missing something?

[Chester]

My understanding is that 12/31/98 remains the due date for restatement of a tax-exempt employer's calendar year plans for TRA '86, but a separate deadline of 12/31/99 exists for restatement of plans for tax-exempt employers due to SBJPA required amendments.