A c-corp. is adopting a psp for the plan year ending 8/31/06, they want to ultimately have a CODA added. Question is can the document be drafted to incorporate the CODA retroactively to 9/1/05(beginning of first plan year)or MUST it be restated when they decide to add it? I'm thinking that it will need to be restated at least 30 days prior to allowing the participants to defer.

They cannot adopt a document for the year you propose as it has already passed.

Well, my initial response to your post is that it is too late for them to adopt the plan. In your example the plan must have been adopted by 8/31/06.

As far as your question about the CODA, the document can contain a CODA provision and have a future effective date for that specific provision. So even if the plan were originally effective 9/1/05 (we'll pretend the document was timely adopted ), the plan could contain a CODA provision which says it isn't effective until 9/1/06.

Well, the company was wanting to adopt the plan retroactively and were under the impression that as long as the plan was in place prior to the the initial contribution being funded, that it would be in compliance.

Their impressions are wrong.