By Wes Lyon, CPA, CFP^®

Every six years, the IRS requires all retirement plans (including cash balance defined benefit plans and 401(k) profit sharing plans) to be restated to comply with recent tax law changes. This required change is coming up soon (March 31, 2025, for defined benefit plans), and your Third-Party Administrator (TPA) will charge a fee for this service.

This restatement doesn’t automatically change your benefits or the day-to-day operation of your plan. In simple terms, this restatement simply keeps your plan in compliance with IRS rules and reduces your risk of a costly and stressful audit. It also provides you an opportunity to review your plan and benefits to make necessary changes without incurring additional costs. Making changes now, in connection with your restatement, can save you up to $2,500 in additional fees otherwise incurred for amending your plan!