The Internal Revenue Service (IRS) and Department of Labor (DOL) require all qualified retirement plans to encompass certain provisions in order to satisfy applicable Internal Revenue Code laws. Plan sponsors using a pre-approved plan document must restate their plan every six years to incorporate law changes, procedural changes and discretionary amendments that have been adopted since the last restatement. Restatements require amending your plan document in its entirety.
What do I need to know?
Per IRS Announcement 2023-6, all defined benefit plans using pre-approved documents must restate their plan by March 31, 2025. The latest approved plan document was issued in July of 2023, and is now available for Plan Sponsors.
What will be updated with the restatement?
This restatement takes the language from your current pre-approved plan document and includes new laws added by Congress and IRS procedural changes issued as noted in IRS Announcement 2020-14.
What happens if I don't restate my document?
The IRS can disqualify your plan if you fail to meet the deadline for restatement. This means all of the taxable benefits to you and your employees are lost, contributions might not be deductible and the employer cannot defer taxes on contributions. This is why restating your plan on a timely basis is critical.
Can I include discretionary updates to my document?
Absolutely! Company demographics, goals, and objectives change over time. Now is a great time to do a complete review of your document should it make sense to add or change plan features.
What does the restatement involve?
Anytime there are material changes to your plan document, additional documents and disclosures may be required. This restatement will require a restated plan adoption agreement, Cycle 3 underlying plan document, and Summary Plan Description (SPD).
Current clients click HERE to complete the brief restatement questionnaire.
Have more questions? Contact us today! (913) 363-7401 | info@omniaexecutive.com
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