As 2025 comes to a close, 403(b) plan sponsors should be mindful of two important plan document deadlines. The requirements for each deadline differ depending on whether a plan is maintained on a pre-approved document or is individually designed.
Mandatory Restatement Cycle for Pre-Approved 403(b) Plans
For sponsors of pre-approved 403(b) plans, the IRS has established a mandatory restatement cycle. During this cycle, sponsors must restate all plan documents onto an updated, IRS–approved version. The current two-year window opened on January 1, 2025, and will close on December 31, 2026. If they have not already, sponsors using pre-approved documents should coordinate now with their service providers to ensure timely restatement.
Amendment Deadline for All 403(b) Plans
Separately, all 403(b) plans, whether pre-approved or individually designed, must adopt amendments reflecting recent legislative changes, including the SECURE Act of 2019, the CARES Act of 2020, the Taxpayer Certainty and Disaster Tax Relief Act of 2021, and SECURE 2.0 Act of 2022. The deadlines vary depending on the type of plan:
- Most plans must adopt amendments by December 31, 2026.
- Collectively bargained plans have until December 31, 2028, to adopt the amendments.
- Governmental plans have until December 31, 2029, to adopt the amendments.
Although the IRS retains discretion to extend these dates, sponsors should proceed with using the current deadlines.
In practical terms, sponsors of pre-approved plans face both the restatement obligation and the amendment obligation, each with the December 31, 2026, deadline. Sponsors of individually designed plans are not required to restate, but they must ensure their documents are amended to comply with legislative updates. Failure to act by the deadline could result in penalties or even disqualification of the plan.
Employers should take this opportunity to confirm what type of plan document they maintain and work with their provider, counsel, or document drafter to complete the necessary updates. Beginning the process early will help avoid last-minute issues and ensure continued compliance with IRS requirements.
Typical Year-End Considerations
In addition to the restatement and amendment deadlines, operational compliance is ongoing. Plan sponsors should consider reviewing their plan now to ensure plan operations match plan terms and recent changes in the law (e.g., RMD processing, hardship and emergency access features, and auto features where applicable) and to decide which discretionary 2025 changes should be papered by the end of the year.
Next Steps for Plan Sponsors
- Review and Amend Plan Documents. Queue the Cycle 2 restatement (for pre-approved 403(b)s) and assemble the SECURE/CARES/SECURE 2.0 amendment set. Keep a running list of features already administered and their effective dates so formal amendments cleanly match operations.
- Review Plan Operations. Confirm that day-to-day administration aligns with the current terms of the plan and new rules. Coordinate with payroll or recordkeeper on items that require reconfiguration (e.g., catch-up mechanics, Roth processing).
- Consider EPCRS If Gaps Surface. If the document or operations review reveals issues, confer with counsel regarding the appropriate correction mechanics under EPCRS. Be sure to document corrective steps.
- Evaluate Prospective Changes. Identify 2026 plan-design changes that must be prospective and may require advance notices (e.g., safe harbor design shifts) and vendor agreement updates.
If you have questions about the content of this alert alert or would like support building your 2026 document and operations calendar, please contact Art Marrapese, Employee Benefits Practice Area chair, at amarrapese@barclaydamon.com; Michael McGovern, partner, at mmcgovern@barclaydamon.com; or another member of Barclay Damon’s Employee Benefits Practice Area.