Every six years, the Internal Revenue Service requires that all pre-approved volume submitter and prototype retirement plan documents be updated and restated. The current restatement period will incorporate provisions from the Pension Protection Act of 2006 (PPA) and other recent changes in law.
The PPA restatement period for defined contribution plans, such as 401(k) plans, is between May 1, 2014 and April 30, 2016. During this period, a new plan document must be prepared and adopted to incorporate mandatory amendments due to changes in law and discretionary changes made since the last plan restatement. Failure to restate a retirement plan during this period can result in the loss of the plan’s tax-qualified status.
The plan restatement process provides us with an opportunity to meet with you and discuss whether your current retirement plan is providing the benefits that your Corporation or LLC desires and to provide a retirement plan “tune-up”. Contact Kelly VanDenHaute or me to set up an appointment to discuss the PPA restatement process.