IRS Notice 2006-44: Sample Amendments for Adding the Roth Feature to 401(k) Plans

The IRS has issued sample amendments to be used by plan sponsors who wish to add the Roth feature to their 401(k) plans. Access the amendments in Notice 2006-44. Excerpt from the Notice: Plan sponsors who want to provide for…

The IRS has issued sample amendments to be used by plan sponsors who wish to add the Roth feature to their 401(k) plans. Access the amendments in Notice 2006-44. Excerpt from the Notice:

Plan sponsors who want to provide for designated Roth contributions in their § 401(k) plans must adopt a discretionary amendment as provided in Notice 2005-95, 2005-51 I.R.B. 1172. The deadline to adopt a discretionary amendment is the end of the plan year in which the amendment is effective, as set forth in section 5.05(3) of Rev. Proc. 2005-66. The timely adoption of the amendment must be evidenced by a written document that is signed and dated by the employer (including an adopting employer of a pre-approved plan).

The IRS states in the Notice that “the amendment will not result in the loss of reliance on a favorable opinion, advisory, or determination letter” nor will adoption of the sample plan amendment affect “the pre-approved status of a master and prototype or volume submitter plan.”

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