January 13, 2020

The Importance of Properly Executed Plan Documents

A recent IRS Chief Counsel Memorandum provides a very important reminder about an essential element required in plan sponsorship, specifically, plan documentation. As a reminder, all plans subject to ERISA must be memorialized by a written plan document.  Further, it is important that the plan document be signed by an individual with authority to bind the sponsoring company.

While this IRS Chief Counsel’s advice does not break new ground by any means, it is, nevertheless, a vital reminder.  As we are on the threshold of a new year and a new decade, it would be prudent for plan sponsors to review their welfare and retirement benefit plans subject to ERISA to ensure that their plan documents and related amendments are appropriately executed.


The information contained in this article is provided as general guidance and may be affected by changes in law or regulation. This article is not intended to replace or substitute for accounting or other professional advice. Please consult a CBIZ professional. This information is provided as-is with no warranties of any kind. CBIZ shall not be liable for any damages whatsoever in connection with its use and assumes no obligation to inform the reader of any changes in laws or other factors that could affect the information contained herein.

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