Post Pension Protection Act for Plan Restatements

Every few years the IRS requires a "Restatement Period" where all Defined Contribution Plans are to be updated to reflect current IRS law.

This latest cycle demands that all Defined Benefit Plans be restated by March 31, 2025.

What Is Plan Restatement?

The plan restatement process is the way that the IRS requires employers to keep pre-approved plan documents in compliance with legislative and regulatory changes. Because there have been so many changes in recent years it is important to review your plan documents to make sure they are complying with current rules.

What Should Plan Advisors and Employers Do?

The plan restatement deadline is an ideal time to review the plan documents as well as the plan design to make any necessary amendments to the plan. Employers and plan advisors should meet to review the existing plan document, any existing plan amendments, and to consider any plan changes they would like to make.

What Happens During a Plan Restatement?

When received by EBS we will prepare the drafting worksheet for the plan based on the terms of the terms of theplan with the documents for execution being setn via email from EBS with instructions for adoption.

What Happens if the Plan is not restated?

Failure to have your Plan restated will have your Plan lose it’s tax qualified status, and can result in the loss of past, current, and future tax deductions for contributions; as well as void the tax sheltered status of the trust fund.  There is even the potential of penalties for noncompliance.  Lastly, correction after the deadline will require a filing with the IRS.  That filing which will incur a service fees to prepare the filing, and an IRS User Fee you must pay to submit the filing.  The bottom line is that a failure to have the restatement done timely will cost several thousand dollars, which will be in addition to fees you need to pay to obtain the actual restated documents.