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April 30 Deadline to Adopt 401(k) Plan Restatements

Employers that sponsor a pre-approved 401(k), profit sharing, or other defined contribution plan must adopt a restated plan by April 30, 2016.  Many 401(k) plans are pre-approved prototype or volume submitter plans.  The IRS requires plan sponsors to periodically adopt an updated plan document that incorporates changes in the laws.  Plan vendors should have provided a revised plan document, approved by the IRS, that complies with the Pension Protection Act of 2006 (PPA) and other law changes (sometimes called a “PPA restatement”).

Employers who have not yet received and adopted a PPA restatement plan should contact their document providers right away, and be sure to comply with the April 30 adoption deadline.