Quick Summary
Your 401(k) plan document must be updated when laws change and fully restated on a periodic IRS cycle. Most plans must adopt discretionary SECURE Act and SECURE 2.0 amendments by December 31, 2026, while the IRS has clarified that some required amendments, such as the Roth catch-up rules, will have later deadlines. A plan operated differently from its document has a compliance problem even when the operation itself follows the law. Restatement is also a natural time to revisit plan design.
Every 401(k) plan runs on a written plan document. It defines who is eligible, how contributions work, when money vests, and when participants can take distributions. The IRS and the Department of Labor expect the plan to follow that document exactly.
Laws change, and the document has to change with them. That happens in two ways: amendments and restatements.
Amendments versus restatements
An amendment changes specific provisions of the existing document. Amendments are used when the law requires a change or when the sponsor chooses to change a plan feature.
A restatement replaces the entire document with a new, updated version that incorporates prior amendments and current law.
Pre-approved and individually designed plans
Most small and midsize plans use a pre-approved plan document, offered by a recordkeeper, third-party administrator, or document provider and reviewed by the IRS. Adopting employers choose options within the document, usually through an adoption agreement.
Pre-approved documents are restated on a cycle set by the IRS, roughly every six years. After the IRS approves a provider's updated document, adopting employers have a window to sign the restated version. Your provider should notify you when a restatement window opens.
Larger or more complex plans sometimes use individually designed documents, which follow different IRS rules for amendments and determination letters.
The December 31, 2026 deadline
The SECURE Act of 2019, the CARES Act of 2020, and the SECURE 2.0 Act of 2022 made many changes to retirement plan rules. Plans were generally allowed to operate under the new rules first and amend their documents later.
IRS Notice 2024-2 set a general deadline of December 31, 2026, for most plans that are not governmental or collectively bargained plans to adopt these amendments. In September 2026, the IRS clarified how that deadline works:
- Discretionary amendments, which cover optional provisions a plan chose to adopt, such as allowing Roth employer contributions, generally must be adopted by December 31, 2026.
- Required amendments are tied to the IRS Required Amendments List. Some, such as the Roth catch-up rules, are expected to have later deadlines. The IRS has indicated it expects the Roth catch-up amendment deadline to generally be December 31, 2029.
Even with later deadlines for some items, December 31, 2026, is an important date for most plans. If your plan implemented any optional SECURE or SECURE 2.0 features, confirm with your document provider that the amendments are on track.
Why the document and operations must match
A plan can fail by doing something the law allows but the document does not describe, or by not doing something the document says it will do. For example:
- Allowing hardship withdrawals when the document does not permit them
- Using a definition of compensation in payroll that differs from the document
- Applying eligibility rules that are more generous or more restrictive than the document
These are operational failures, and they can put the plan's tax-qualified status at risk. Most can be corrected through the IRS Employee Plans Compliance Resolution System (EPCRS), but it is far easier to keep the document and operations aligned in the first place.
What to review during a restatement or amendment
Restatement is often treated as a signature exercise. It is more useful treated as a plan review. Questions worth asking:
- Does the definition of compensation match how payroll actually works?
- Are eligibility requirements and entry dates still right for the workforce?
- Does the vesting schedule still fit your retention goals?
- Should the plan add or change features such as automatic enrollment, Roth contributions, or safe harbor provisions?
- Are distribution and loan provisions consistent with what the recordkeeper actually administers?
After you sign
Keep signed copies of the restated document, every amendment, and the adoption agreement in your fiduciary file. If plan provisions changed, participants may need an updated summary plan description (SPD) or a summary of material modifications (SMM). Make sure payroll and the recordkeeper are working from the same version of the plan you signed.
What happens if you miss a deadline
Missing a restatement or amendment deadline is a plan document failure. It can usually be corrected through the IRS Voluntary Correction Program, but that involves a filing and a fee. Late amendments may also lose certain protections, so it pays to stay ahead of the dates rather than catch up afterward.
Want a second look at whether your plan document is current? Brian Williams, CPFA®, of Northshire Consulting LLC | Registered Investment Advisory Firm meets with business owners to review plan documents and design. Call 203-401-6062, email bwilliams@northshireconsulting.com, or visit northshireconsulting.com to schedule a plan review.
Frequently asked questions
Who is responsible for restating our plan document?
The plan sponsor is responsible for adopting the document. Your recordkeeper, TPA, or document provider typically prepares it and tells you when to sign.
Do we have to restate if nothing about our plan changed?
Yes. Restatement on the IRS cycle keeps a pre-approved document current with the law, even if your plan's features stay the same.
Do participants need to be notified?
If a restatement or amendment changes plan provisions, participants generally need an updated summary plan description or a summary of material modifications.
This material is for educational purposes only and is not individualized investment, tax, or legal advice. Advisory services are offered through Northshire Consulting LLC | Registered Investment Advisory Firm.