Navigating 403(b) Plan Restatement Deadlines: What Employers Need to Know

ARTICLE | June 19, 2025

Understanding the 403(b) Plan Restatement Process

If your organization sponsors a 403(b) retirement plan, it’s important to understand the IRS requirement to periodically restate your plan documents. This ensures that all pre-approved 403(b) plans stay up to date with the latest regulatory changes.

The first round of updates (Cycle 1) required plans to be restated and adopted by June 30, 2020.

What’s Happening Now: Cycle 2

The IRS has initiated the second remedial amendment cycle (Cycle 2) for pre-approved 403(b) plans.  If you’re using a pre-approved 403(b) plan, including those formerly known as Volume Submitter plans, you’ll need to adopt a restated plan document by December 31, 2026, to comply with this new cycle.

Why This Matters

This isn’t just a best practice; it’s a requirement. Missing the restatement deadline could lead to IRS compliance issues, potential penalties, and even the potential loss of your plan’s tax-favored status.

How to Prepare for Cycle 2

Because the restatement process can be complex, it’s wise to start early. Work closely with your plan providers, legal counsel, and other advisors to ensure that everything is completed well in advance of the deadline.

Resources Available

You don’t have to navigate this process alone. The IRS offers helpful tools, including a Q&A on the second cycle of pre-approved 403(b) plan providers and a list of plans that need to be updated during this cycle.

Looking Ahead

This restatement deadline is a valuable opportunity to ensure your 403(b) plan is fully compliant with IRS rules, thus providing your employees with a secure and compliant retirement savings option. Taking the time to understand this process now can help you avoid issues later and keep your employees’ retirement savings on track.

At Insero, we believe in keeping you informed every step of the way. Our team is here to help you understand what’s required and make confident decisions about your employee benefit plans. Talk to us today to learn more about how our Employee Benefit Plan Audit Practice can support you.