Ask the Experts November 19, 2024

What Are the Restatement Deadlines for Preapproved Plans?

Experts from Groom Law Group and CAPTRUST answer questions concerning retirement plan administration and regulations.

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Q: I read in a recent Ask the Experts column that the restatement deadline for preapproved 403(b) plans is expected to be December 31, 2026. Is the restatement deadline the same for 401(a) and 457(b) plans? We are a public university that sponsors all three plan types.

Kimberly Boberg, Kelly Geloneck, Emily Gerard and David Levine, with Groom Law Group, and Michael A. Webb, senior financial adviser at CAPTRUST, answer:

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A: There are different restatement cycles for various plan types. Your 401(a) plan’s deadline, assuming it is a preapproved plan, will be based on the type of plan it is.

If it is a 401(a) defined benefit plan, the next (“Cycle 3”) restatement deadline is March 31, 2025. If it is a 401(a) defined contribution plan, the latest (“Cycle 4”) restatement period has not been announced by the IRS as yet, as that period will not begin until after the IRS reviews the Cycle 4 documents submitted by January 31, 2025.

As for 457(b) plans, there is actually no IRS preapproval process for such plans. Thus, there is neither a restatement requirement nor a restatement deadline.

NOTE: This feature is to provide general information only, does not constitute legal advice and cannot be used or substituted for legal or tax advice.

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Administration November 18, 2024

DOL Launches Data Collection Effort For ‘Lost & Found’ Retirement Initiative

Expected to go live in December, the database is designed to serve as a centralized resource for workers and beneficiaries to locate unclaimed retirement savings. 

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The U.S. Department of Labor’s Employee Benefits Security Administration has announced the start of its data collection efforts to build the Retirement Savings Lost and Found database, an online search tool aimed at reconnecting American workers with retirement benefits they have lost track of over the years.

The database, mandated by the SECURE 2.0 Act of 2022, will serve as a centralized resource for workers and beneficiaries to locate unclaimed retirement savings. Starting Monday, plan administrators, recordkeepers and other service providers are encouraged to voluntarily submit data to populate the system, expected to launch by December 29.

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“The fundamental purpose of any job-based retirement plan is to pay promised benefits to the workers who participate in those plans and plan beneficiaries,” said Lisa Gomez, assistant secretary of the Employee Benefits Security Administration, in a statement. “Our goal, which we believe plan sponsors, administrators, and their service providers share, is to make sure workers and their beneficiaries receive all the retirement benefits they earned and were promised.”

The information collection request issued by EBSA outlines the data elements needed to populate the database and the methods by which retirement plan administrators can submit this information. Gomez emphasized the importance of collaboration between the government and the retirement plan community to ensure the tool’s success.

Once operational, the Retirement Savings Lost and Found database will enable individuals to search for unclaimed benefits associated with former employers. The tool is expected to simplify the often-complex process of tracking down retirement accounts, particularly for workers who may have forgotten about older accounts or whose employers no longer exist.

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