The Internal Revenue Service (IRS) requires retirement plan sponsors to restate their plan document(s) at regular intervals. This restatement incorporates certain law changes contained in the Pension Protection Act (PPA) of 2006, as well as other required interim amendments and must be completed by April 30, 2016.
To ensure the compliance of our clients; BCG will be preparing restatements for qualified plans over the next 18 months. Once we begin the process of restating your plan, we will send you an email with detailed instructions and an outline of the process.
Why does my qualified retirement plan have to be restated?
The IRS requires that qualified plans be restated, or updated, at predetermined intervals to include law changes since the last restatement.
What does this restatement include?
This restatement incorporates certain law changes contained in the Pension Protection Act (PPA) of 2006, as well as other required interim amendments. The additional amendments include updates for IRC 415 and 411, Heroes Earnings and Assistance Relief Tax Act (HEART), Emergency Economic Stabilization Act (EESA), and the Worker, Retiree and Employer Recovery Act (WRERA).
What is changing?
PPA changes have been applied to qualified retirement plans for the past several years, so this restatement does not fundamentally alter your plan. Instead, it combines changes that have been introduced since 2006.
What do I need to do to restate my plan?
As a sponsor, you must acknowledge and accept the restated plan documents that BCG prepares for you: Adoption Agreement, General Information Sheet, Basic Plan Document, and Summary Plan Description. Instructions for completing this process will be included in the email notifying you that we have started the process of preparing your restatement.
If I intend to terminate my qualified retirement plan, do I still have to restate it?
Yes. The IRS could disqualify your qualified retirement plan if you terminate the plan without first amending it to include the recent law changes. Such disqualification could result in severe tax consequences.
If I am the only person in my plan, do I still have to amend it?
Yes. All qualified retirement plans, including one-person plans, must be amended to include the recent law changes.
If you have questions about the restatement of your plan documents, or if you would like to make changes to your plan that can be incorporated as part of this restatement, please call your Plan Account Manager or Client Relations at 800-524-4015 option 5 for assistance.
Thank you for choosing BCG for your retirement services administration.