Every six years, the IRS requires that qualified retirement plans that rely on preapproved plan documents be completely amended and restated. All plan documents must be updated by July 31, 2022. Updating those plan docs can be expensive. This is the time to explore the options, ensure you're paying the lowest costs and getting the right service.
2021 is a mandatory retirement plan restatement year. This is essentially the “renewal year” for retirement plans, as this process repeats every six years and requires all 401(k) and profit-sharing retirement plans using a prototype document to undergo a mandatory amendment process. The restatement process incorporates the prior six year’s interim amendments into a new consolidated, “restated” singular document. The cost of the restatement may vary from provider to provider, but typically will run between $1,000 to $3,000. Don’t accept the “rubber stamp” version of approval and miss out on valuable opportunities to improve your plan. There are valuable discussions to be had to help you extract more value out of the mandatory restatement process.