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Specifically, the Service reasoned that the status of an optional form of benefit is not a "protected benefit" under the Sec. nbsp;under a particular optional form of benefit if, after the plan amendment is effective with respect to the participant, the alternative forms of payment available to the participant include payment in a single-sum distribution form that is otherwise identical to the optional form of benefit that is being eliminated or restricted. To assist eligible businesses, on October 31, the Internal Revenue Service issued an optional form (form 5305-SIMPLE) for setting up SIMPLE plans through IRAs; the IRS is working on (but has not yet released) model amendments to the code for employers opting to adopt SIMPLE 401 (k) plans. |
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