The 403(b) Plan Restatement Deadline Is Dec. 31: How Employers Can Start Preparing Now

If your organization sponsors or maintains a 403(b) plan on a Cycle 1 IRS pre-approved document, you need to start the process of restating the plan document with your document provider.

Plans must be restated on a Cycle 2 IRS-pre-approved document by Dec. 31. Employers should make a plan now to review plan terms and coordinate with service providers before the December deadline.

The Second Remedial Amendment Cycle for 403(b) Plans

In 2019, the IRS established the remedial amendment cycle system for 403(b) plans. It requires periodic plan restatements and provides a structured process to maintain document compliance.

Under these rules, an employer sponsoring or maintaining a 403(b) plan must restate its plan document on a cyclical basis—generally every six years—to remain compliant.

The current update period is the second remedial amendment cycle, commonly referred to as “Cycle 2.” The IRS issued a list of pre-approved plan documents for the Cycle 2 restatement period. An employer currently using a Cycle 1 preapproved 403(b) plan document must restate its plan to the Cycle 2 pre-approved version by Dec. 31.

Why This Matters

The IRS requires employers to keep their 403(b) plan documents up to date to reflect changes in tax law and IRS requirements. Once the IRS approves updated plan documents for a new cycle, employers must timely adopt those documents to continue relying on IRS approval of the plan. Timely adoption helps ensure the plan remains tax‑favored and compliant.

If employers fail to restate a 403(b) plan by the deadline, they risk losing reliance on IRS approval of the plan document. This could expose the plan sponsor to compliance issues or required corrective action.

Next Steps for Employers

Employers that sponsor 403(b) plans should:

• Confirm whether their plan uses a preapproved IRS plan document
• Coordinate with their plan vendor, third‑party administrator and legal counsel to obtain the Cycle 2 restated plan document
• Formally adopt the updated plan document by Dec. 31.

Please reach out to Michael Williams, Anne Harvey or any member of the Phelps employee benefits and executive compensation team with questions or for advice and guidance.