In order to maintain a qualified plan, the IRS requires that you have a written plan document. The IRS also requires that the written plan document be amended and restated periodically. As a plan sponsor it is critical to the plan’s success that you retain a good third party administrator (TPA) to assist you with your document and amendment work. Failure to timely restate and amend your plan can result in plan disqualification and taxation of plan assets, but more likely will result in IRS imposed penalties.
Administrative Retirement Services, Inc. (ARS) notifies our clients of all plan amendments and restatements necessary to keep their plans qualified. ARS was established in 1998. For the prototype plan document used by ARS, below are the restatements and amendments required since 1998. Please note that volume submitter and individually designed are two other types of plan documents. These types of plan documents follow different amendment and restatement requirements, which are not identified in this article.
Restatement from 1991-1992 and is known as the TRA 86 Restatement
| Amendment | Reason | Due Date |
Discretionary or
Mandatory
|
|---|---|---|---|
|
Highly Compensated
Employee (HCE)
Amendment 1
|
Simplified methods of determining HCE’s.
- Revenue Procedure 95-34
|
December 31, 1995
|
Mandatory |
|
Highly Compensated
Employee (HCE)
Amendment 2
|
Simplified methods of determining HCE’s.
- Revenue Procedure 95-34
|
December 31, 1995
|
Mandatory |
|
401(a)(31) Model
Amendment OBRA
|
Related to eligible rollover distributions
|
December 31, 1994
|
Mandatory |
|
401(a)(17) Model
Amendment OBRA
|
Related to the compensation limit
|
December 31, 1994
|
Mandatory |
|
USERRA Model
Amendment
|
Related to military service.
- Revenue Procedure 96-49
|
December 31, 1996
|
Mandatory |
Restatement from 2001 - September 30, 2003 and is known as the GUST Restatement
| Amendment | Reason | Due Date |
Discretionary or
Mandatory
|
|---|---|---|---|
|
Economic Growth
and Tax Relief
Reconciliation Act
(EGTRRA)
|
Adopt changes made
by EGTRRA
|
December 30, 2003 | Mandatory |
|
Required Minimum
Distribution (RMD)
|
Adopt RMD rules | December 31, 2003 | Discretionary |
|
Final Required
Minimum
Distribution (RMD)
|
Adopt RMD rules | December 31, 2003 | Mandatory |
| Deemed 125 Model |
Related to welfare
and compensation
|
September 30, 2003 | Discretionary |
| Automatic Rollover |
Adopt automatic
rollover provisions
|
December 31, 2005 | Mandatory |
| 401(k) Final Regs |
Adopts changes made
to sections 401(k)
and 401(m) of the
Code
|
End of 1st plan year
beginning on or after
January 1, 2006
|
Mandatory |
| Roth |
Allow Roth
contributions to plan
|
End of plan year the
amendment is effective
|
Discretionary |
|
Katrina Relief
(KETRA)
|
To allow relief under
KETRA
|
December 31, 2007 | Discretionary |
|
2007 Interim
Amendment
|
Adopts several
required changes
|
December 31, 2007 | Mandatory |
Restatement from May 1, 2008 - April 30, 2010 and is known as the EGTRRA Restatement
Amendments following the EGTRRA Restatement:
| Amendment | Reason | Due Date |
Discretionary or Mandatory
|
|---|---|---|---|
|
2007 Interim Amendment
|
Adopts several required changes
|
Plan restatement
due date
|
Mandatory |
|
2009 Interim Amendment
(Pension Protection Act-PPA) |
Amendment for PPA, EESA, Heart Act & WRERA
|
December 31, 2009 | Mandatory |
Failure to timely restate and amend your plan document can result in plan disqualification and taxation of plan assets, but more likely will result in IRS imposed penalties. The best way to avoid problems is to retain a third party administrator, such as ARS, that takes your plan seriously and provides you all the necessary services to maintain your plan’s qualified status.
If you have questions about Written Plan Document Requirements Across the Years please contact Administrative Retirement Services, Inc.
Definitions:
Restatement - an existing plan document is replaced by an entirely new plan document. The new plan document will contain language that incorporates all current law up to a certain date.
Amendment - an add on to the existing plan document that adds or changes provisions within that document. Amendments are used to update plan documents in between restatements.