Pre-Approved Retirement Plan Restatements: Important July 31 Deadline

Approaching deadline for Pre-Approved Retirement Plan Restatements.

We’re wrapping up our final post in a series on retirement plan amendment deadlines. Thank you Smith & Downey, P.A. for permitting us to share your professional insights with our readers.

Pre-Approved Retirement Plan Restatements

For employers using pre-approved retirement plan documents (e.g., prototype, volume submitter documents) for their retirement plans, the IRS requires such plans to be restated periodically (depending on the type of plan involved) and to be amended for amendments reflecting changes in the law in the interim. So-called “Cycle 3” restatements for certain defined contribution retirement plans (e.g., 401(k) plans, profit-sharing plans, etc.) are required to be adopted by July 31, 2022. (This is in addition to the changes required by the Setting Every Community Up for Retirement Enhancement Act of 2019 (the SECURE Act) and the Coronavirus Aid Relief and Economic Security Act (the CARES Act).

Timely Next Steps Regarding Retirement Plan Amendment Deadlines

If you are using a prototype or volume submitter document, you should be sure that your “Cycle 3” restatement (if applicable) is adopted by July 31, 2022. Of course, because the prototype document provider does not provide legal advice, consider having the document reviewed by legal counsel before adopting the restated document. Professional counsel can help plan sponsors be confident that their pre-approved plan document is compliant and up-to-date.

Be sure to read the first two articles in the series: Retirement Plan Amendment Deadlines: Critical Dates You Want to Know and Lifetime Income Disclosure Deadlines.