EGTRRA Plan Restatement FAQ
What is the EGTRRA Restatement? Under federal law, all qualified retirement plan documents must be rewritten periodically. This document restatement is based on the 6-year cycle established by the Internal Revenue Service. The current cycle we’re under began February 2005 and will end January 31, 2011.
What is the new document called? The document is referred to as the EGTRRA Document. EGTRRA (pronounced Egg-tra with a short a) is an acronym that represents Economic Growth and Tax Relief Reconciliation Act of 2001.
When do you need to restate your Plan? The revised document for this cycle was approved by the IRS on March 30, 2008. Your existing plan document must be replaced with an EGTRRA Document no later than April 30, 2010.
Why do you need to restate your Plan? To maintain the tax qualified status of the plan by keeping it current with legislation that has passed from 2001 forward.
When will I have to do this again? The start of the next 6-year cycle will start February 1, 2011. It took approximately 2 years for the IRS to approve documents this last go around. We expect sometime between the years 2013 – 2015 there will be another requirement to restate your plan document.
What will this cost? Please refer to your service agreement or you may need to request a quote.
This is an opportunity to add or revise a provision in your plan that you may have been thinking about; it could be eligibility, vesting or adding a safe harbor provision.
We’re going green with the restatement by making every effort to reduce the amount of paper used during this process. Our default format of the EGTRRA Document will be a CD that will contain the plan document and supporting attachments and notices. If you want a hard copy of the document instead please contact us directly. kfish@bpp401k.com
Please do not hesitate to call if you have questions.
Jason Oesterlei, QPA, QKA, AIF®, Manager - Compliance
314.983.1295
joesterlei@bpp401k.com
10.20.08