YankeeFan
Oct 27 2009, 11:00 PM
A qualified retirement plan is sponsored by a sole proprietor. The plan solely covers the owner-employee and is therefore not subject to Title I of ERISA. Was the plan required to adopt an amendment for compliance with the automatic rollover provisions under IRC 401(a)(31)(B)?
Sieve
Oct 28 2009, 11:56 AM
That's an IRC requirement, independent of ERISA. So, Yes.
masteff
Oct 28 2009, 02:02 PM
But, correct me if I'm wrong, it's only needed if the plan has a deminimis cashout limit greater than $1000.
Notice 2005-5 might be of some use:
http://www.irs.gov/pub/irs-drop/n-05-05.pdf
Sieve
Oct 28 2009, 03:28 PM
You're correct, Masteff, but that would encompass the vast majority of plans prior to the change to Section 401(a)(31)--unless, of course, the plan contained no involutary cash-out provision at all, in which case no amendment would be necessary.