SECTION 1. PURPOSE

.01 This revenue procedure provides a model amendment that may be used to assist employers in adopting a plan that contains 401(k) SIMPLE provisions.

The model amendment gives plan sponsors a way to incorporate 401(k) SIMPLE provisions in plans containing cash or deferred arrangements (‘‘CODAs’’) and matching contributions. The model amendment incorporates the alternative method of satisfying the nondiscrimination tests applicable to these plans as contained in §§ 401(k)(11) and 401(m)(10) of the Internal Revenue Code. Sections 401(k)(11) and 401(m)(10) were added to the Code by § 1422 of the Small Business Job Protection Act of 1996, Pub. L. No. 104– 188 (‘‘SBJPA’’). This revenue procedure does not apply to § 408(p) SIMPLE plans, as described in § 1421 of the SBJPA, under which contributions are made to employees’ SIMPLE IRAs. .02 The model amendment may be used by organizations or practitioners with approved master and prototype (‘‘M&P’’) plans, regional prototype plans, or volume submitter specimen plans to modify the existing plans they sponsor so that employers can establish new plans containing 401(k) SIMPLE provisions. Employers that currently maintain an M&P plan, a regional prototype plan or a volume submitter specimen plan may modify existing 401(k) plans to incorporate 401(k) SIMPLE provisions. The model amendment may also be used by sponsors of individually designed plans to modify existing 401(k) plans to incorporate 401(k) SIMPLE provisions. The model amendment is available only for sponsors of plans containing provisions required to satisfy §§ 401(k), 401(m) and 401(a)(30) that have received favorable opinion, notification, advisory, or determination letters that take into account the requirements of the Tax Reform Act of 1986, Pub. L. No. 99–514 (‘‘TRA ’86’’).