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Stay compliant and retain tax advantages by restating your retirement plan

January 29, 2016


Over the past couple of years, “The Pension Protection Act of 2006” (PPA) brought about several changes to tax and pension laws. These changes impose new requirements for prototype retirement plans, and to be in compliance, those plans must be “restated.”

What is a “restatement”?

A “restatement” is a modification of the plan documents to incorporate the legally required provisions. The IRS has approved new plan documents, and each plan sponsor will need to adopt and sign the new documents to retain the plan’s tax advantages.

What is the PPA restatement period?

Employers who have adopted prototype retirement plans and those who are entitled to use the six-year cycle for these plans that have been pre-approved must restate their plan by April 30, 2016.

Who is responsible for plan compliance?

Sponsors of a prototype retirement plan must ensure that the plan stays in compliance with ever-changing tax laws. This includes:

  • completing and signing new Adoption Agreements when necessary
  • being aware of and receiving all plan documents and amendments (including the pre-approved Basic Plan Document, good-faith and interim amendments, if any, and the most recent IRS opinion letter)
  • amending the plan within the prescribed time frame to remain qualified and retain its tax-deferred status
  • notifying the plan service provider of changes that may affect the plan document

How can Clark Schaefer Hackett help with the restatement?

We will provide you with signature-ready IRS-approved plan documents that reflect your current and newly required provisions.

What if you decide not to restate your plan?

If you do not restate your plan within the specified time frame, your plan will no longer qualify for favorable tax treatment for both the plan sponsor and its participants. And your organization and employees may be subject to additional taxes, interest and penalties.

To find out more about the restatement process, and get assistance with amending and restating your plan, contact Clark Schaefer Hackett’s Qualified Plan Administration and Consulting Group at 513-424-5000.

All content provided in this article is for informational purposes only. Matters discussed in this article are subject to change. For up-to-date information on this subject please contact a Clark Schaefer Hackett professional. Clark Schaefer Hackett will not be held responsible for any claim, loss, damage or inconvenience caused as a result of any information within these pages or any information accessed through this site.


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