Defined Contribution Plan Cycle 3 Restatement

Every six years, the Internal Revenue Service (IRS) requires all pre-approved qualified retirement plans be restated to maintain the plan’s tax-qualified status. The next period for these restatements is upon us. The restatement will incorporate mandatory IRS plan amendments and sponsor elected amendments since the last restatement period in one plan document.

As a plan sponsor, restatement provides a great opportunity to make any plan document or provision changes that you may be considering. These updates will be incorporated into the restate document at no additional cost.

The adoption period has begun and must be completed by July 31, 2022.

As a trusted retirement plan document provider, we are committed to ensuring that our clients’ plans retain their pre-approved status. If we currently maintain your plan document, we are in the process of establishing an in-house schedule that will ensure that your plan is restated in a timely manner. If you are not currently a retirement plan client of BWTP, but are interested in talking with us about this service, now is a great time. We would love to work with you to design the best plan for your personal and business needs.

REMEMBER: Plan restatements are required by the IRS. Failure to comply could result in significant IRS penalties.

We will work with you to review your current plan document, we may also suggest modifications to plan provisions to align your plan with your current business goals.

Please contact either Lori Plescia (lplescia@bwtpcpa.com) or Anne Christian (achristian@bwtpcpa.com) for more information.

Anne Christian, CPA is Manager of the Retirement Services department at BWTP, P.C. Read more about Anne here.

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