Qualified Retirement Plans are required to be compliant with current laws and regulations. The IRS, recognizing that it would be burdensome for Plan Sponsors to re-write their Plan documents every time a new requirement appears, allow Sponsors to comply operationally with any new requirements while only restating their formal Plan documents periodically. For Pre-Approved Documents such as yours, a formal restatement is required every six years. Your current document must be restated no later than April 30, 2016.
A Pre-Approved Plan Document is one which the IRS has reviewed and confirmed as compliant with current requirements. It may offer Plan Sponsors the option to choose among different features, but all of the features are IRS-approved.
The IRS recently made several key announcements about Pre-Approved Defined Contribution Plans, including:
– The IRS is in the process of issuing final approval letters (“opinion and advisory letters”) for Pre-Approved Defined Contribution Plans that were previously restated for the law known as EGTRRA.
– In the period beginning May 1, 2014, and ending April 30, 2016, the IRS will accept applications for individual determination letters from employers restating in the current six-year period.
– An adopting Employer whose Defined Contribution Plan is eligible for the six-year remedial amendment cycle, who adopts by April 30, 2016, a Master & Prototype or Volume Submitter Defined Contribution Plan that was approved based on the 2010 Cumulative List (i.e., current requirements), will be considered to have adopted the plan within the employer’s six-year remedial amendment cycle.
To read the full announcement from the IRS, click here.
The Plan Documents you received from Robin S. Weingast and Associates, Inc. were drawn up in template form by the software company DATAIR. DATAIR is in the process of modifying its software to reflect any final instructions from the IRS. We expect to begin receiving the new software within the next few weeks.
This resource further explains what this may mean for your business.
The Robin S. Weingast and Associates, Inc. team is here to help throughout this process. We will be working with each of our clients to make sure they understand this announcement and comply with IRS restatement requirements in an orderly, painless and timely manner.