 NEWSLETTERS Volume 9, Issue 3 .................... November 2009 Written Plan Document Requirements Across the Years 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 1992. 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 Amendments following the TRA 86 Restatement:
Restatement from 2001 - September 30, 2003 and is known as the GUST Restatement Amendments following the GUST Restatement:
Restatement from May 1, 2008 - April 30, 2010 and is known as the EGTRRA Restatement Amendments following the EGTRRA Restatement:
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. © Administrative Retirement Services, Inc. 2009 Published by Administrative Retirement Services, Inc., Copyright 2001 by Administrative Retirement Services, Inc. Reproduction in whole or in part is prohibited except by written permission. All rights are reserved. Information has been obtained by Administrative Retirement Services, Inc. from sources believed to be reliable. However, because of the possibility of human or mechanical error by our sources, Administrative Retirement Services, Inc. or others, Administrative Retirement Services, Inc. does not guarantee the accuracy, adequacy, or completeness of any information and is not responsible for any errors or omissions or the result obtained from the use of such information. Readers should seek specific advice before acting with regard to the subjects mentioned here. |