Staying compliant in retirement plan administration is not just a common goal, but a critical necessity to eliminate audit risks and avoid legal complications. And as we gear up for the final sprint of 2026, it’s time for plan providers and administrators to turn your focus on an essential task: Plan Restatements. It is a process that demands close attention to detail and adherence to deadlines, and to streamline this process for you, Congruent Solutions is here to help.
Let’s dive into understanding what you need to know about plan restatements and how we can help you with that!
What Plan Restatement Is and Its Importance in Retirement Plan Administration?
A plan restatement is a comprehensive and legally mandated update of a 401(k) plan document that incorporates all regulatory changes and amendments that have been made since the last restatement. They normally apply to pre-approved plans, used mainly by plan sponsors, and not individually designed plans.
The primary purpose behind restatements is to ensure the plan remains compliant with current laws and regulations, maintaining its tax-qualified status. Failure to restate the plan could result in loss of its tax-qualified status and, subsequently, severe tax consequences for both employers and participants. Additionally, you may need to undertake corrective actions as per the IRS, which includes fees to reinstate the plan’s qualified status.
Besides adhering to compliance, the restatement process also offers an opportunity for employers to review and update plan provisions. The purpose of this is to ensure necessary changes can be made to align the plan with their business goals and take advantage of any new benefits that may have become available since the last restatement.
Congruent Solutions: Your Partner in Plan Restatements
At Congruent Solutions, we understand the challenges that may come with the 2026 Plan Restatement Cycle and the deadline for it is approaching. Though you may still have ample time, why wait when you can start now and eliminate future stress?
For over two decades, we’ve been dedicated to supporting plan providers and third-party administrators in creating and updating plan documents accurately and on time. Our expertise in this area lies in navigating the intricacies of plan restatements, ensuring every plan detail is meticulously reviewed and documented. For more clarity on how we do it, here’s our breakdown:
- Preparing Plan Documents: Our team ensures all necessary documents, from the comprehensive plan document to the critical trust agreement and summary plan description, are all prepared with precision and in adherence to industry regulations.
- Creating Key Plan Provisions: We specialize in crafting essential plan provisions such as loan policies and safe harbor notices. They are tailored to your plan’s specific needs and regulatory requirements.
- Preparing Supporting Documentation: beyond the services above, we also prepare Employer/Participating ER Resolutions and other supporting documents, guaranteeing a compliant and cohesive package.
We also offer a flexible “pay-as-you-go” engagement model to suit your unique plan requirements. This approach grants you the freedom to engage our services precisely where you need them, whether it’s for document preparation or for support with specific provisions.
Secure Your Compliance Today
At Congruent, we know how difficult it can be to review hundreds of pages of plan documents on your team. And we are here to help take that stress away from you. As the deadline for the Cycle 4 plan restatements is on December 31, 2026, there’s no better time than now to partner with us and get it done. By starting the process early, you alleviate the pressure as your plan documents will be accurate and compliant well in advance.
So let us handle the complexities of plan restatements while you focus on providing a secure future for plan participants. Don’t wait any longer. Contact us today to learn more about how we can support you throughout this process with confidence and compliance!
