Pre-2001 required GUST amendments?

[Guest FredReilly]

I am rephrasing this since no interest has been shown. I think my concern is a follows. If you do not make the GATT amendment, and the funding calcualtion is based upon the document provision (it is my understanding that itis the IRS posisition that you must do so) then when you retroactiviely amend, have you not created a non-deductible contribution for 2000 since you have perhaps used a benefit in excesss of the limit?

The GATT and 415(e) amendments appear desirable to do as soon as possible, however, are there required amendments prior to the extended GUST compliance date?

[AndyH]

Fred, perhaps some clarification may help produce the answer. The more the specific the question, the more likely it is you'll get responses.

What GATT provisions are you concerned about? Are we talking about 415(e), 415 limits for a retirement age prior to 65, or something else?

Some GATT provisions can be anticipated in funding by including an attachment to the Schedule B. I believe 415(B) is one of them. Others can confirm this if this is the issue of concern.

Regarding other amendment items, I cannot think of any provisions that must be amended prior to the GUST remedial amendment period assuming that the document was in pre-GUST order. One thing that is important is have the client make a decision on the application of the GATT rate (i.e. monthly, annual). We have clients sign something confirming the decision.

[Guest Mr. X]

Fred, I think if you read Revenue Ruling 98-1, you will find the answers to your questions. Most notably the fact that you may anticipate an amendment to the changes to IRC Section 415(B)(2)(E), and that the operations of the plan (other than distributions) do not have to correspond to the actual amendment once it is made.