Plan Restatements – FAQs
INTAC ADDRESSES FREQUENTLY ASKED QUESTIONS PERTAINING TO REQUIRED PLAN RESTATEMENTS
ARE PLAN RESTATEMENTS REQUIRED BY THE IRS?
Plan restatements are required by the IRS. Once every six years, the IRS wants all plans to be updated with the newest language and rewritten to encompass all the law changes and other amendments, which have taken place since the last restatement.
WHAT WOULD HAPPEN IF I DID NOT RESTATE MY PLAN?
Restatements are not optional. If you do not restate your plan within the time frame specified by the IRS, the plan could be disqualified, resulting in the loss of any tax deductions and deferrals of income previously taken. Even if a plan is to be terminated, it must first be restated for compliance.
WOULD ADDING AN AMENDMENT TO THE PLAN BE SUFFICIENT INSTEAD OF RESTATING IT?
There were numerous “interim” amendments during the last few years, which were designed to temporarily keep the plan in compliance until the next “re‐write” of the documents. Those amendments (sometimes several pages in length) were provided to our clients as a courtesy, at no additional charge.