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Sevices
Plan Documentation Updates
FOX & FOX will be restating all of our prototype plans for the GUST series of amendments starting in January 2002. All qualified plans need to be restated for GUST, generally, by August 31, 2003. FOX & FOX has received favorable IRS Determination Letters for each of our prototype plans. For our clients that are not currently using our prototype documents, we will restating your plan for GUST prior to February 28, 2002. An overview of the GUST Restatement will be sent out to our clients over the next few weeks along with the EGTRRA Amendment (see below).
The IRS stated that a plan generally does not have to be amended for The Economic Growth and Tax Relief Reconciliation Act of 2001( EGTRRA) until the end of the plan's 2002 plan year, On the other hand the IRS also stated that EGTRRA did not include any exceptions to the anti-cutback rules of IRC ?11(d)(6). Thus if a plan is not updated until the end of the 2002 plan year, the plan must guarantee there are no cutbacks of benefits. For this reason, FOX & FOX will be issuing EGTRRA amendments for our plans beginning in December, 2001. The Amendments will be in adopted by our clients prior to participant's accruing benefits or allocations for the 2002 plan year.
FOX & FOX is in the process of amending our cafeteria plans for the recent IRS release of regulations relating to mid-year plan election changes. The regulations replace the "change in family status" rules that have been used in the past. For our clients that are currently using the FOX & FOX Prototype Cafeteria Plan document, your plan will be amended. For our clients that are not currently using our prototype cafeteria plan, we will be restating your plan on our prototype documents utilizing the IRS's final regulations.
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