Eliminate DB stuff from DC plan? I hope?

[Guest SJPrince]

I have a 401(k) plan doc that contains the usual boilerplate stuff about if there is a defined bene plan maintained by the employer, and all the necessary junk etc etc. I recall reading somewhere that maybe we can eliminate all that stuff? This employer has no defined bene plan and never has had one.

Anyone know if this language can be deleted? TIA

Samantha Prince

[rcline46]

New regs say if optional forms in a profit sharining/401k plan include installments and or annuity options, they can be removed with a 90 day notice PROVIDED the plan otherwise meets the tests which permit lump sum only benefits.

[Guest SJPrince]

Sorry, what i am referring to is the language regarding the limitations of allocations to participants... specifically the language that discusses the defined benefit fraction and the dc fraction and that they cannot be greater than 1 etc.

Do you know what I mean now? I just want to delete all this out if allowed since there is no db plan maintained by this employer.

Ty

[Guest RJM]

The 1.25%/ 1.00% DB/DC fraction testing requirement was repealed effective 1/1/2000. SBJPA '96 killed it.

[Guest SJPrince]

Thank you RJM!! That is what i vaguely recalled

Appreciate your time in responding (and giving me the answer I was looking for too)

[david rigby]

RJM is correct. However, the plan must still comply until the plan does proper amendment or reference to appeal.