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What is the deadline for adopting the Required Minimum Distribution amendment? Rev. 11/20/03, E-mail Alert 2003-22 Generally, the RMD amendment must be adopted by December 31, 2003. There are exceptions, however. Revenue Procedure 2002-29 requires the final regulations to be adopted by a defined contribution plan by the last day of the 2003 plan year. However, keep in mind that the plan must operationally comply with the final regulations in 2003, regardless of the actual date the amendment is adopted. Revenue Procedure. 2003-72 extends the deadline for adopting the final 401(a)(9) regulations into a defined contribution plan to the later of the end of the 2003 plan year or the end of the GUST remedial period, if later. For eligible plans that follow Rev. Proc. 2003-72, and submit for a GUST determination letter by January 31, 2004, the RMD amendment deadline is 91 days after the date that the IRS issues the GUST determination letter. May a Prototype Plan Sponsor Adopt a Prototype Sponsor Amendment and incorporate the RMD Amendment into all their plans? Our plan document allows Prototype Plan Sponsors to amend the plan on behalf of the employers who have adopted their plan. The amendment should be done by December 31, 2003, to insure that all plans have met the deadline, regardless of whether it is a calendar year plan or not. A copy of the amendment should be provided to all the adopting employers. The employers must pass a corporate resolution acknowledging the incorporation of the amendment into the plan.
To learn more, call 973-492-1880 or e-mail info@mhco.com. © 2012, McKay Hochman Co., Inc. All rights reserved. |
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