In July 2020, the IRS announced employers with pre-approved defined contribution retirement plans (401(k), profit-sharing, and money purchase plans) will need to have their retirement plan documents rewritten within the next two years. The deadline to do so is July 31, 2022. The IRS goes through this process every six years.
If your current retirement plan document has been drafted by your legal counsel:
As the Plan Administrator of your retirement plan, you should contact your legal counsel to ensure your document has or will be restated accordingly. If the document has already been provided to you, you must execute the document with dates and signatures by July 31, 2022; otherwise, your document will not be compliant and you may need to correct it under an approved IRS correction program.
It is important to remember any time you wish to make a change to your retirement plan document that you consult with your legal counsel. In most cases, your retirement plan document will require an amendment to incorporate any changes you wish to make. Any document updates must also be provided to us as your third-party administrator. The updates ensure we are properly administering your retirement plan.
If you are on the Watkins Ross prototype document:
If you are using our Retirement Plan Document Services, we may have already completed your restatement. If not, be assured that we are in the process of finalizing them. Please be sure that you have returned all signature pages to us for our files before the July 31, 2022 deadline.
Have questions about your retirement plan documents and how IRS requirements impact your pre-approved defined contribution retirement plans? Connect with Watkins Ross today for a personalized look into your retirement plan structure, documentation, and IRS requirements.
