September 15 Deadline for Final 401(k) Plan Regulation Amendments

As discussed in a prior Morgan Lewis LawFlash, the Internal Revenue Service and Treasury Department previously released final regulations governing 401(k) plans. The regulations were generally effective for plan years beginning after January 1, 2006, but could be adopted as early as any plan year that ended after December 29, 2004. All 401(k) plans are required to be amended to comply with the mandatory portions of the final regulations. The deadline for such amendments depends on a number of factors, but generally the amendments must be adopted no later than the employer’s income-tax filing due date for the 2006 income tax return (plus extensions). Thus, for calendar-year taxpayers, the amendment due date is September 15, 2007.

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