Tricycle Restatement

A restatement is the complete re-writing of your plan document.

If you use a prototype or volume plan document (which are the most common types of plan documents), you are required to restate (or re-write) the plan document in order to incorporate any prior plan amendments as well as new regulations and laws.

All defined benefit and cash balance plans that use prototype or volume plan documents must be restated by March 31, 2025.

If the restated plan document is not signed by the March 31, 2025 deadline, the plan could potentially lose its tax-qualified status.

The restated plan document should be signed as soon as possible and submitted to the IRS using their Voluntary Compliance Program (VCP). A compliance fee must be paid to the IRS when submitting a VCP application.

Yes. Since the plan is required to be restated, the restatement fee is an expense that can be paid using plan assets.