Plan Document Maintenance Included in our 401(k) Administration Services

Our Plan Document Maintenance Program (PDMP) is an optional service to keep your plan document up to date with all IRS requirements, easing the administration duties associated with the plan and effectively reducing and levelizing your document-related costs. The services covered under PDMP include:

  • No-cost regulatory restatement approximately every six years
  • No-cost regulatory amendments as released by the IRS and the U.S. Department of Labor
  • A fifty percent discount on discretionary amendments and restatements as requested by the plan sponsor

The real benefit of the PDMP is to allow plan sponsors to budget their Plan document expenses over time, which historically has been a one-time fee. The icing on the cake is the savings you will be entitled to as a PDMP user.

For example:

Mandatory Restatements – The IRS/DOL requires that all Plans using a pre-approved document be restated approximately every six years to incorporate all regulatory changes occurring during the remedial amendment period.

Interim Amendments – The IRS/DOL may require that good faith amendments be adopted by the Plan to incorporate regulatory changes that occur during the remedial amendment period. These interim amendments are then included in the Plan document during the next following mandatory restatement. The number of interim amendments during a six-year cycle depends on how many proposed regulations actually become law. Historically, we’ve seen as few as two and as many as eight amendments. The fee for these will vary, depending on the scope of the legislative change. Clients who choose to remain under the PDMP will not be charged for interim amendments during the current remedial amendment period.

Discretionary Amendments – An amendment is required to incorporate plan provision changes that are elected by the plan sponsor. For example, if a plan sponsor decides to add loan provisions or change eligibility requirements, etc. Clients who participate in the PDMP will receive a 50% discount on all discretionary amendments.