A lot can change in a 403(b) plan over time, new rules, added provisions, and small updates layered on year after year. A plan restatement pulls all of that into one clean, current document.
For public school systems and 501(c)(3) organizations, it’s a required step to keep the plan compliant and its tax-favored status intact.
The next deadline for all 403(b) plan restatements is Dec. 31, 2026, making this a good time to review your plan and confirm it reflects how it operates today.
Top 4 Reasons Why Restatements Happen
Several factors drive the need for a 403(b) plan restatement. Over time, IRS requirements, legislative updates, discretionary amendments, and vendor changes all accumulate, making it necessary to consolidate everything into a single, up-to-date document.
Here are the top reasons:
- IRS remedial amendment cycles: The IRS runs formal cycles for pre-approved 403(b) plan documents. During these periods, sponsors must adopt updated documents—or restate individually designed plans—to reflect regulatory changes. The first cycle closed in 2020, and the next deadline for all plans is Dec. 31, 2026.
- Legislative and regulatory updates: Federal laws and regulations often affect how 403(b) plans operate.
- SECURE Act provisions, like updated required minimum distribution ages and expanded part-time eligibility
- SECURE 2.0 enhancements, including optional employer contributions on student loans, Roth employer contributions, and revised catch-up contribution rules for higher earners
- Updates to hardship distribution rules and related operational guidance
- Accumulated interim or discretionary amendments: Over time, plans may adopt amendments to address targeted changes. A restatement consolidates all of these updates into a single, cohesive governing document.
- Vendor and administrative changes: Many 403(b) plans work with multiple vendors. A restatement helps align contracts, investment options, loan and distribution rules, and administrative procedures across all providers.
Restatement: Who Must Do It
Not every 403(b) plan is the same, and restatement requirements depend on the type of document your organization uses.
Plans that rely on pre-approved documents from a recordkeeper, TPA, or law firm generally need to adopt the updated version during the IRS cycle to maintain reliance on the provider’s IRS opinion letter.
Sponsors with individually designed plans also need periodic restatements to keep plan language aligned with current law and reflect how the plan operates.
All 403(b) plans, both ERISA and non-ERISA, must maintain a compliant written document. ERISA-covered plans have additional obligations, such as participant notices and updated Summary Plan Descriptions, which often require extra communications to employees.
Restatement vs. Amendment – What’s the Difference?
It’s easy to confuse a restatement with an amendment, but they serve different purposes.
An interim or discretionary amendment is a targeted update, usually added as a short addendum or rider, to address a specific law or plan design change.
A restatement, on the other hand, is a complete rewrite of the plan document. It consolidates interim amendments, regulatory updates, and operational changes into one integrated document with a new execution date. Think of it as consolidating all the small updates that have accumulated over time into a single, current plan document that clearly reflects how the plan works today.
Key Risks of Not Restating
Failing to restate your 403(b) plan can create serious compliance and operational issues.
Some of the key risks include:
- Loss of reliance on the IRS opinion letter: Sponsors using pre-approved plans may lose the protection provided by the provider’s IRS opinion letter, which confirms the plan meets IRS requirements.
- Document noncompliance: Outdated plan documents can jeopardize the plan’s tax-favored status.
- Operational mismatches: Discrepancies between the plan document and day-to-day operations can trigger audit findings or require costly corrections.
- Vendor misalignment: When multiple vendors are involved, inconsistent contracts or procedures can lead to participant errors.
Even small delays or oversights in updating the plan can have ripple effects, making restatements an essential part of maintaining a smooth, compliant 403(b) plan.
Restating Your Plan: 7 Practical Steps
Restating a 403(b) plan can feel complex, but breaking it into clear steps makes the process manageable.
Follow these seven steps:
- Confirm your cycle and deadline: Check with your recordkeeper, TPA, or counsel to determine which restatement cycle applies and the deadline for your plan. Dates can vary depending on provider and plan type.
- Review plan design choices, including key features such as:
- Employer contribution strategies (match formulas, eligibility)
- Roth options and after-tax considerations
- Catch-up contributions (age 50 or service-based)
- SECURE / SECURE 2.0 features, like student loan matching or Roth employer contributions
- Coordinate vendors: Align loan policies, hardship documentation, distribution rules, and rollover acceptance across all 403(b) providers. Consolidate where possible to reduce complexity.
- Update procedures and train teams: Refresh written procedures for universal availability, eligibility tracking, payroll feeds, and vendor handoffs. Make sure HR and payroll teams understand any changes.
- Obtain approvals and execute the document: Secure board or committee approvals, if required, and have the plan’s authorized signatory execute the restated plan by the deadline.
- Communicate with participants: Provide a clear summary of any operational changes. For ERISA plans, update the Summary Plan Description to reflect these changes.
- Maintain complete records: Keep copies of prior plan versions, interim amendments, reliance letters, resolutions, and vendor contracts in your files for compliance and reference.
Clear communication is key when restating a 403(b) plan. Keep messages simple and easy to understand, highlighting any updates or new features, such as Roth employer contributions, catch-up rules, or clarified hardship processes. Include a clear call to action, directing employees to the benefits portal or plan materials for details, and provide a summary so everyone understands the changes, even if your plan isn’t ERISA-covered.
How to Get Started With Your 403(b) Restatement
- Contact your recordkeeper or TPA for your plan’s pre-approved restatement package and cycle dates.
- Schedule a design review with your service provider to confirm any elective features you want to add or modify.
- Build an internal timeline with clear owners for legal review, vendor coordination, payroll updates, and employee communication.
- Verify all dates (restatement deadline, amendment effective dates, RMD changes) and reflect them in your project plan.
Your CBIZ Team is Here to Help
Restatements are more than a compliance checkbox—they’re a chance to modernize your 403(b) plan, streamline administration, and improve the participant experience. CBIZ offers a comprehensive service to ensure your 403(b) plan is fully compliant with the new restatement requirements. Connect with an advisor to schedule a review today.
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