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Special Effective Dates Addendum/Appendix for 403(b) IRS Pre-Approved Restatements

Q. If a plan is drafted retroactive to Jan. 1, 2010, but with the current plan provisions reflected in the adoption agreement, what is the best practice for completing the Special Effective Dates Addendum/Appendix?

The plan is restated effective Jan.1, 2010, and includes payroll period entry dates in Section 6 of the adoption agreement.

  • On Jan. 1, 2010, the plan had quarterly entry dates.
  • The plan was amended effective April 1, 2013, to monthly entry dates.
  • The plan was amended again effective June 9, 2015, to payroll period entry dates.

Example 1:

Entry Dates (AA Election 6):

  • The entry date provision under Election 6 is effective June 9, 2015.
  • The entry date provision under Election 6 from April 1, 2013, to June 9, 2015, was monthly.
  • The entry date provision under Election 6 prior to April 1, 2013, was quarterly.

Example 2:

Entry Dates (AA Election 6):

  • The entry date provision under Election 6 is effective June 9, 2015.

Does the Special Effective Dates Addendum/Appendix only need to reflect the effective date of the provision reflected in the adoption agreement, or does the Addendum/Appendix need to reflect all the changes made, including what the provision was on Jan. 1, 2010.

A. You will show in the “recap” sheet ALL changes that have been made since 2010. So your question on entry dates for example would show the three effective date changes and the rules that applied beginning on each date. This will show the IRS in the case of an audit and the year that they are auditing how operations were handled. Keep in mind that the more complete this recap is, the better off the employer is in gaining total reliance under the document.