The Pension Protection Act of 2006 requires that all defined contribution plans must have their plan document restated every six to eight years. All defined contribution plans must have their plan document between May 1, 2014 and April 30, 2016. This requirement creates the perfect time to accomplish three things:
- Review and benchmark your plan for competiveness
- Make those changes you’ve been delaying due to other priorities
- Update your plan document to comply with IRS regulations
You, like many plan sponsors, typically have an on-going checklist of items they would like to change/amend on their plan. However, due to heavy workloads and the costs associated with making changes, many of these “discretionary” items are put off until a future time.
The purpose of this restatement is to incorporate plan amendments, which occur from time to time, into the actual plan document. It also provides an opportunity for plan sponsors to re-evaluate their plan features and benefits.
Most third-party administrators are charging a fee to update these plan documents. Fees can be as high as $2,000.
To learn more about these requirements and how to maximize your time and money, please feel free to contact Jay Cohen at 404-201-2284 or firstname.lastname@example.org
Monterey Wealth, founded in 2004 with over $108 million in assets under managed, is an Atlanta-based, boutique wealth planning, investment management, and 401k consulting firm dedicated to providing unique and customized solutions to its clients. Please visit our website at www.montereywealth.org