Based on Notice 2001-57, I think employers who implement catch-ups on, say July 1, 2002 for example, have until the end of 2002 to amend their plans for catch-ups. The 401(k) regulations would normally require an amendment for an expanded 401(k) feature to be made in advance of the first payroll, but I think the Notice overrides this rule for catch-ups. My view is that this is like updating a plan for the increased 402(g) limits - no need to do it until the end of the year. Does anyone think employers should be amending plans now rather than waiting until the end of the year?

An employer must have adopted a plan with a cash or deferred arrangement (i.e. a 401(k) plan) before the effective date of any employee election to defer cash into the plan. Treas. Reg. 1.401(k)-1(a)(3)(ii). As long as the cash or deferred arrangement has been adopted, then the amendment permitting catch-up contributions may be adopted by the end of the 2002 plan year even though the plan has accepted catch-up contributions earlier during that same plan year.

In short, I agree.