Deadline Approaching For Mandatory Changes To Contribution Plans

Recent changes in the United States tax and ERISA laws require preapproved, defined contribution plans, such as 401(k), profit sharing, and money purchase plans be amended and restated. The deadline to make these changes is April 30, 2016.  Failure to timely amend and restate your company’s plan by the deadline could cause it to be disqualified for tax purposes causing your company and plan participants to incur additional taxes and penalties.  The company or organization providing the forms for your company’s defined contribution plan should have contacted you by now regarding the amendment and restatement of that plan necessary to comply with the new regulations.  If your plan administrative company, mutual fund family, other financial institution, or law firm has not contacted you or provided the modified documents, or if you have the modified documents but have not completed and signed them, you should promptly contact the provider to insure that your company’s plan is timely updated.  Other obligations may apply to your plan.

Mandatory Ally Law

If you have questions about the April 30, 2016 deadline or wish to discuss your plan’s proposed amendments and restatements, contact an attorney at an Ally Law member firm. Ally Law member firms from every country have attorneys experienced in all aspects of applicable tax and employee benefit plans; they can guide you in developing a plan that best suits your company’s needs and is compliant with applicable laws. For more information about our services in this area, contact us at yourally@ally-law.com.

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By Evans & Dixon LLC.