For the many employers that use a pre-approved 401(k) plan (or another type of defined contribution plan), the deadline to execute a restatement of the plan was July 31, 2022. An employer that missed the deadline will need to (i) review whether a correction will be required to maintain the plan’s favorable tax status and
Individually Designed Plans
IRS Makes it Riskier to Maintain Individually-Designed Retirement Plans
By Monique Warren on
Posted in Determination Letter Program
The Internal Revenue Service just made it riskier to maintain a tax-qualified individually-designed retirement plan by eliminating the five-year determination letter remedial amendment cycle for these plans, effective January 1, 2017.
Although determination letters are not required for retirement plans to maintain tax-qualified status under the Internal Revenue Code, virtually all employers sponsoring individually-designed retirement…