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.