What plan amendments must be made in 2008?
Rev. 11/21/08; E-mail Alert 2008-15

Defined Contribution Plan Amendments for 2008

415 Amendment: Adopt by employer’s tax filing deadline for limitation years starting July 1, 2007 and thereafter.

Example: A plan with a calendar year limitation year would have until the employer’s tax filing deadline for the limitation year ending December 31, 2008, generally, March 15, 2009, plus extensions.

Discretionary Amendments: Must be adopted by the last day of the plan year for which the discretionary amendment is effective.

Example: A discretionary amendment to change from the current to prior year testing method must be made before the end of the plan year being tested, specifically, for a 2008 calendar year plan the amendment must be made by no later than December 31, 2008 in order to make the change for the 2008 plan year test.

EGTRRA Effective Date: The preapproved plan document restatement  period started May 1, 2008 and must be completed by April 30, 2010. The effective date is first day of plan year during which the restatement was adopted. For example, the effective date for a calendar year plan that adopts the EGTRRA restatement in 2008 is January 1, 2008. (The effective date for calendar year plans adopting it in 2009 is January 1, 2009.) A July 1 fiscal year plan that adopts the restatement before July 1, 2009 will have an effective date of July 1, 2008.

GUST DC Plan Termination Amendment:  A GUST DC plan being terminated before the last day of its 2008 plan year must amend the GUST document by adopting the PPA amendment and the 415 amendment. This amendment includes a HEART Act change in disability that was effective retroactively to 2007. Note that a GUST plan terminating in 2008 does not have to complete the EGTRRA restatement.