Amending or restating a plan on a timely basis is critical to avoid IRS disqualification, lost tax benefits, and employee-deferred taxes on contributions and earnings. In addition, every qualified retirement plan must operate according to its plan document and should always be reviewed to incorporate any ongoing legal and regulatory changes.
FuturePlan takes a proactive approach, and periodically reviews plan documents to ensure they meet business goals and are in compliance with the law.
Causes for restatement
In the two primary circumstances that cause a plan document to need a restatement, FuturePlan manages all plan restatements to protect plan sponsors.
- Changes to plan design. When a plan sponsor elects to make changes to the plan design, this can make prior plan amendments since the last restatement complex and render the plan difficult to read and understand. FuturePlan reviews plans carefully and integrates all plan changes for seamless review.
- IRS required restatements. The IRS requires that plans be rewritten, reviewed, and approved by the IRS every six years and reflect any changes in the laws that might effect a plan. FuturePlan keeps tabs on what requires review and when, adding an extra layer of compliance to a plan.