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403(b) Plan Restatements

Q. Our understanding was that the upcoming 403(b) plan restatements will need to be restated retroactive to Jan, 1, 2010, or the effective date of the plan, if later. However, we understood that the plan restatement could reflect the current plan provisions, and the appendix would be used to document the effective date of the current plan provision if it had changed since Jan. 1, 2010, or the effective date of the plan, if later.

For example, a plan that was effective Jan. 1, 1990, would need to be restated retroactive to Jan. 1, 2010. If the entry date for Employer matching contributions was quarterly on Jan. 1, 2010, amended to monthly on Jan. 1, 2012, and amended again to semi-annual on Jan. 1, 2016, the restatement would reflect the semi-annual entry and the Appendix would include a Jan. 1, 2016, effective date for the entry date provision.

Is this your interpretation, or are all of the entry date changes required to be documented in the appendix? 

A. You are correct in including in the document the current provision for the 2016 restatement; however, somewhere the employer will need to indicate the other operational provisions showing the 2010 and the 2012 entry dates. That can either be on the appendix included with the submission or on another document that outlines what was used for each year, if applicable. We have been told that the IRS will be looking for this on audit.

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