Here’s a great read for those of you in need of updating your plan document, courtesy of 401kfiduciarynews.com.
One of the benefits to establishing a qualified retirement plan is that they are subject to favorable tax treatment. Did you know that failing to timely amend your plan document for changes in Federal tax laws can affect your plan’s status as a tax-qualified plan? Companies often engage third party service providers to ensure that these amendments are made in a timely fashion, but this is not always the case. The information below is intended to provide helpful tips on how to stay current with the applicable tax codes that might affect your plan, but also what to do if you find you have failed to amend your plan in a timely manner.
How Often Do I need to Update My Plan Document?
Our nation’s tax code is constantly changing, and the laws Congress passes can often times impact our 401(k) plans. The Internal Revenue Service (IRS) establishes deadlines that govern when a written plan document must be amended to reflect tax law changes, and this applies to all 401(k) plans with participant balances. Generally 401(k) plans are to be amended and restated every five years for individually designed plans (or six years if a pre-approved plan document is used).
Click here to read the rest of this article.
Integrity Financial Corporation helps business owners and individuals build a financial legacy through well designed executive compensation and retirement plans. Our clients can expect to receive personalized service and expertise, built on a foundation of trust. To contact an advisor, please call us at 1.800.794.4015
Please visit our website at www.ifclegacy.com to have an independent fiduciary 401(k) advisor at Integrity Financial Corporation analyze and evaluate your company’s 401(k) plan.
Comments are closed.