Retirement plans adopting their recordkeeper or third-party administrator’s volume submitter document must obtain an opinion letter from the Internal Revenue Service stating the document reflects all applicable legal requirements.  Every six years, these pre-approved documents must be restated to comply with new legal requirements. The most recent cycle for 401(k), profit sharing, and money purchase pension plans opened August 1st, 2020. The restatement process in this cycle must be completed by July 31st, 2022.

This means that in the near future, plan sponsors who have not already heard from the provider of their plan document, will be notified about the restatement process. Not a great deal of effort is required on the part of plan sponsors beyond reviewing the new adoption agreement to ensure it accurately reflects the plan design. 

The restatement cycle is also an opportune time to make any optional amendments desired by the plan sponsor.  We can provide a comprehensive plan review to identify changes in your plan design that can benefit the employer and enhance participant outcomes.