EACA amendment to ACA mid year

client is looking to do a QDIA reset/ACA reenrollment mid year- the plan currently uses EACA and it can't be amended to the new reset deferral percentage mid year - anyone every opt out of EACA mid year? is it a problem to drop the EACA protections mid year and use a standard ACA/auto escalation for a mid year reenrollment. plan is not safe harbor. Any help would be appreciated. 

bmore1147, although it does not seem as important as in the case of safe harbor or QACA, where an employer commitment to making contributions is involved, and although the EACA provisions are only going to apply to a participant for 90 days, so that you might think you could amend mid-year effective for anyone hired after the date of the amendment or for whom the 90-day period has terminated, I think the IRS would probably interpret the Code's use of "plan year" in Code sec. 414(w)(4)(A) and Treas. reg. 1.414(w)-1(b)(1) as requiring that you not change for the year. Maybe someone else will have different thoughts.

Luke- Thanks for the response- this was certainly my concern as the language under EACA appear to prevent mid-year amendments- I sincerely appreciate the response- We will most likely conduct the QDIA reset in august and default % reenrollment 1/1 - was hoping to complete this in one singular action, but it appears this isn't possible. Thanks for the response

14 hours ago, bmore1147 said:

Luke- Thanks for the response- this was certainly my concern as the language under EACA appear to prevent mid-year amendments- I sincerely appreciate the response- We will most likely conduct the QDIA reset in august and default % reenrollment 1/1 - was hoping to complete this in one singular action, but it appears this isn't possible. Thanks for the response

bmore1147, again, not clear. Just looks like a concern, but no certainty that actually a problem, at least from what I can see. Good luck.

OK- appreciate the response, thanks for the insight