IRS reminds businesses to update plans for retirement

Deadline is Sept. 30

The Internal Revenue Service (IRS) is reminding about 750,000 small and mid-size businesses using "off-the-shelf" retirement plan documents that they must update their plans by Sept. 30. Businesses must formally adopt updates to maintain the tax benefits associated with retirement plans.

The deadline is a result of rules that apply to so-called Master & Prototype plans and Volume Submitter plans. These off-the-shelf retirement plans are IRS-approved templates intended to standardize and simplify the complex employee plan area. Employers who provide such plans for their employees are typically small to mid-size businesses, including self-employed persons, such as some doctors and lawyers.

Many employers will only need to make sure they adopt their plan amendments by Sept. 30. But others also have to file the amendments with the IRS by Sept. 30 to keep their plans tax qualified.

Employers of plan sponsors who need more information should call customer account services at (877) 829-5500.