Take Advantage of Cycle 3 Document Restatements


In order to maintain and receive their special tax benefits, a Qualified Retirement Plan must meet requirements put in place by the IRS and these are reviewed by the Internal Revenue Service (IRS) in cycles every six years.  The IRS just opened what is being called the Cycle 3 restatement window and it runs from August 1, 2020 through July 31, 2022.  During this time, all qualified retirement plans drafted on pre-approved documents must be restated.

So, what is a restatement? It is a “re-writing” of the plan document to include any voluntary amendments the plan has adopted since the last restatement plus it incorporates any interim amendments that the IRS required all plans to adopt since their last restatement window. If you use a pre-approved document, this restatement is mandatory and must be completed by July 31, 2022, the last date of the restatement window, or the plan will be subject to steep penalties for non-compliance.

Since your document must be restated anyway, now is the perfect time to discuss your current plan design to make sure it still has the optimal design for your company.  If we are your current TPA, we have been in contact with you about how we are handling the restatement process for your plan.  If you don’t currently have your plan with RMS, why not let us take a look before you complete your restatement?  We are happy to discuss your plan and help you make sure you are getting what you want out of your retirement program and as an added bonus, we will prepare your Cycle 3 restatement as part of our new client onboarding process.

If you have questions or are interested in making sure you are getting the most from your plan design, please reach out to our New Business and Marketing Director, Caitlyn CdeBaca at CCdeBaca@consultRMS.com or call directly at (502) 400-5172.

Let us help design and administer a Retirement Program that meets your needs.

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