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Restatement

May 22, 2014 by  
Filed under Uncategorized

PLAN RESTATEMENTS

Pre-Approved Defined Contribution Plans

The majority of profit sharing and 401(k) plans are on pre-approved plan documents.  These documents are required to be restated on a six year cycle as determined by the IRS.

All pre-approved defined contribution plan documents were required to be restated by April 30, 2016 to incorporate the provisions from the Pension Protection Act of 2006 (PPA).   If your plan was not restated timely, the IRS is currently offering a 50% discount on the Voluntary Correction Program (VCP) filing fee through April 30, 2017.   The next required restatement period will begin in 2020.

Individually Designed Plans

All ESOPs we administer are individually designed plans drafted by an attorney. Some profit sharing and 401(k) plans are also individually designed plans.  Individually designed plans were on a five year restatement cycle.  The IRS intends to eliminate the five-year remedial amendment cycles for individually designed plan starting in 2017.

Last Digit of Plan Sponsor’s EIN Plan Cycle Last Day to File
1 or 6 A 1/31/2017
2 or 7 B 1/31/2013
3 or 8 C 1/31/2014
4 or 9 D 1/31/2015
5 or 0 E 1/31/2016

 

Please contact KJ Retirement Consultants, LLC at (651) 797-3440 if you are not sure whether your plan document is an individually designed plan or a pre-approved plan.

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