401(k) Plan Document - Timing of Signing

Hello,

We're having a differing of opinion in our office on this.  We're taking over a plan in existence since 2011.  We are mirroring their prior document. The client didn't sign our doc by the 2024 plan year. 

1) Should we just use the prior document to administer the 2024 plan year and create our document for 2025? or,

2) Can we still prepare our document for the 2024 plan year even though it won't be signed by the Plan Sponsor until 2025?  Again, no changes being made, just a mirror image of the prior document.

I appreciate all responses.

Can't restate a plan retroactively. You can only adopt a new plan retroactively. 

So, you're using the other document for 2024.

Thanks Bill.  That was my stance as well.  I'll pass this along.

Since nothing has changed would not you use timing for an amendment that does not change or reduce any benefits?  Such as when plans must be restated?  Many items are applicable retroactively.  DB Plan all need to be redone by this March 31.  Does the effective date of that restatement need to be 2025?  While I am not saying that for what is hoped to be done here can be retroactive, I just point out that not all amendments and restatements must be within the plan year because they don't.  In other words, the answer may not be as simple.

4 hours ago, Below Ground said:

Since nothing has changed would not you use timing for an amendment that does not change or reduce any benefits?  Such as when plans must be restated?  Many items are applicable retroactively.  DB Plan all need to be redone by this March 31.  Does the effective date of that restatement need to be 2025?  While I am not saying that for what is hoped to be done here can be retroactive, I just point out that not all amendments and restatements must be within the plan year because they don't.  In other words, the answer may not be as simple.

 

 

 

 

 

The only things you can adopt with a retroactive amendment date is for something that is within the remedial amendment period. 
 

But the op is essentially describing a discretionary restatement so I think it’s stuck with 2025. 

Under SECURE 2.0, employers can do a retroactive amendment to improve benefits starting with the 2024 plan year if adopted by the due date of the employer’s tax return. Whether or not that can be applied to a full restatement may be a stretch, I would not push it that far without counsel weighing in.

If needed, they can still use 1.401(a)(4)-11(g) to make a retroactive change.