What is a plan document restatement?
All 401(k) plans and profit sharing plan documents are required to be amended and restated in order to:
- comply with recent legislative changes, and
- maintain their tax-qualified status.
Plan document restatements happen regularly (about every 6 years), on ‘cycles’ prescribed by the Internal Revenue Service (IRS).
What is a Cycle 3 restatement?
The current (2020-2022) IRS-mandated ‘cycle’ is referred to as ‘Cycle 3’ and is applicable to all existing 401(k)/profit sharing plans. The Cycle 3 restatement window opened in late 2020 and closes July 31, 2022. Failure to formally adopt the Cycle 3 restatement before the deadline could result in the disqualification of the plan, possible taxation its participants, loss of deductions, and penalties.
Can restatement fees be paid by plan assets?
How do I restate my plan to comply with Cycle 3?
Pinnacle Plan Design, LLC will formally restate your 401(k)/profit sharing plan document to comply with Cycle 3 in a timely manner. Our plan document is “Pre-Approved” by the IRS. During the restatement process, we will consult with you regarding the design of you plan to ensure it best accommodates your goals, as discretionary changes can be incorporated into the Cycle 3 restatement.
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