Blue Ridge ESOP Associates Industry News
Posted by Gary Gurman
Every six years, all IRS pre-approved plans must be restated to a new plan document to retain the plan’s tax-qualified status.
Most 401(k) plans and certain other Defined Contribution plans have been operating on an IRS pre-approved plan document for years. The restatement each 6-year cycle keeps plan documents current with legislative changes that must be adopted and gives plan sponsors an opportunity to incorporate new plan provisions that may not have been previously utilized or newly available. The deadline to restate a pre-approved plan is July 31, 2022 in order to avoid losing tax-qualified status. Timely restatement avoids paying penalties and filing fees for late compliance.
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