Will You Be Required To Amend Your Retirement Plan Document This Year?
Apr 02, 2015
Yes, it is very likely you will. Tax laws impacting retirement plans are always changing. When laws change, plans must be amended and/or completely rewritten/restated. Now is that time. The changes to the law related to the Pension Protection Act of 2006 are being formally added to all defined contribution plans (401(k) and profit sharing plans). This means you must amend and restate your 401(k) profit sharing plan some time between May 2014 and April 2016.
“Why now? That Act was passed in 2006”. Well, simply because Congress and the IRS provide a period of time after the enactment of a new law for plan sponsors to amend their plans to reflect the changes.
The most successful retirement plan begins with the appropriate design to meet the needs of the Company and the organization’s employees. This year, being the year of required restatement, is also an excellent time and opportunity to revise the plan itself to best benefit the company’s owners and employee group, at the lowest cost.
Moreover, these changes provide the perfect opportunity to revisit opportunities to adjust and update the various provisions of your retirement plan in order to optimize the benefits to you as business owners and for the employees. Upon notice of the required amendment/restatement from your plan document provider – consider also talking with them about how you could improve the plan design. William Vaughan Company is available to work with you and your provider to help you achieve the greatest benefit from your retirement plan.
By: Michelle Klement
Categories: Healthcare & Dentistry