Solo 401(k) Restatement

Stay up-to-date with your Solo 401(k) requirements!

Every six years, the IRS requires that Qualified Plans amend and “restate” their plan documents to reflect recent legislative and regulatory changes. Plan restatements are required by the IRS and are not optional.   This page is your #1 resource for finding answers to the most common restatement FAQs, scheduling your 1-on-1 appointment with a 401K Specialist, and ensuring your plan is restated by the 2022 deadline!

What is a restatement and why do I have to do it?

The IRS requires that qualified retirement plan documents be restated, and subsequently re-adopted by Employers, on a consistent basis.  This is to ensure that plans remain up to date with all legislative and regulatory amendments.  Quest Trust Company’s Individual (K) plan documents are restated on a regular 6-year cycle, retroactively combining any amendments that may have been made since the last required restatement.

Restatement Document Links:

Steps to Restate Your Plan

Step 1 –  Download a copy of the updated plan documents and complete the Restatement Kit.

Step 2 – Submit your completed Restatement Kit through AdobeSign or by uploading the PDF document to our Secure Document Upload Website:

Frequently Asked Questions (FAQs)

What is the deadline to restate my plan?

The IRS requires that this restatement be completed by July 31, 2022.  Therefore, no later than July 31, 2022, you must complete and sign your new Restatement Kit reflecting these changes. While the deadline to restate your plan is July 31st, 2022, we strongly encourage our clients to restate their plan before the end of 2021.

Will the plan now allow for voluntary employee after-tax 401(k) contributions in 2021 (necessary for the Mega Back Door Roth strategy)?

After contributing up to the annual limit in your 401(k), you may be able to save even more on an after-tax basis contributions. Earnings on after-tax contributions are considered pre-tax and would grow tax-deferred until withdrawals begin. Converting after-tax 401(k) contributions to a Roth account is an option. After converting to the Roth 401k, earnings can grow and be distributed tax-free if certain requirements are met.

What are some potential strategies for after-tax 401(k) contributions?

Making after-tax contributions allows you to invest more money with the potential for tax-deferred growth. That’s a powerful benefit on its own—but that’s not the end of the story. You could then go a step further and convert your after-tax contributions to the Roth 401k, via an in-plan conversion. When you convert after-tax contributions to Roth, no taxes would be due on the conversion of your contributions. However, a taxable event would be created when you convert the earnings to the Roth option in your 401(k) plan. Earnings in a Roth account grow and may potentially be distributed tax-free as long as certain conditions are met. Look out for further educational resources from Quest Trust Company to learn more about voluntary employee after-tax 401(k) contributions & the Mega Back Door Roth Strategy, for jump starting your Roth 401k.

What happens if I don’t restate my Plan by the required date?

Your plan will no longer be a qualified plan and will no longer have the advantage of being tax-deferred.  Your assets, and those of your employees if applicable, will become immediately taxable for the year following the restatement deadline. The IRS has provided guidance in Revenue Procedure 2019-19, regarding the penalty they will assess on a “non-amender” (an employer who does not amend and restate their qualified plan when required on a timely basis).  The employer penalty is determined by calculating the amount of taxes due on all of the assets in the qualified plan, plus interest and/or penalties for not paying the taxes on time.  The IRS also reserves the right to go back 3 years (the “open Years”) to do this calculation.  The Revenue Procedure also indicates the penalties that will apply if you execute the Restatement Kit late (after July 31, 2022).

Have questions or need assistance?

Contact to schedule your one-on-one consultation with a 401K Specialist!