Restatement of Fidelity Solo 401k Plan Required by 7/31/2022

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HomeStretch
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Restatement of Fidelity Solo 401k Plan Required by 7/31/2022

Post by HomeStretch »

[2022 thread bumped in 2023 --admin LadyGeek]

In past Solo 401k threads, the discussion about the duties of the Plan Administrator has touched on the IRS requirement to periodically update plan documents. However, I don’t recall a thread that discussed the specifics or timing of the process. As Plan Administrator for my Solo 401k plan, I called Fidelity’s retirement plan group to discuss the restatement requirement. The Fidelity representative said the IRS requires such plans to be updated every six years. The restatement period is not based on the age of one’s plan but rather the IRS-mandated cycle. The current cycle runs from 8/1/2020 to 7/31/2022. Failure to comply by 7/31/2022 may result in penalty or possible revocation of a plan's tax favored status.

The link to Fidelity’s Retirement Plan Restatement web page is: https://www.fidelity.com/retirement-ira ... tion-guide. The process involves printing/retaining the linked restated documents, printing/signing/retaining the linked restated Self-Employed Retirement Plan Adoption Agreement and distributing the linked restated Summary Plan Description to plan participants. No paperwork needs to be submitted to Fidelity, however the rep said there is a certification that is electronically sent to Fidelity as part of signing the restated Adoption Agreement online.

I have not completed the restatement process myself as I am focused on the Form 5500-EZ today but I will edit this post if necessary after I do so.

Has anyone completed the Solo 401k plan restatement for this current cycle?
Topic Author
HomeStretch
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Re: Restatement of Fidelity Solo 401k Plan Required by 7/31/2022

Post by HomeStretch »

I completed the restatement process today. Easy to do.
andrino
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Re: Restatement of Fidelity Solo 401k Plan Required by 7/31/2022

Post by andrino »

Thanks for the information. I just got my request. It looks like they are slowing rolling out the emails.

My email states to "please certify that you have adopted your restated Plan by logging in to your account and viewing the message we have posted in the communication center."

In my communication center message there is a link to "Please confirm that you have adopted your restated Defined Contribution Retirement Plan." That link just redirects me back to the communication center web page and marks the message as read. Did your link direct you to a different website?
Last edited by andrino on Tue Jul 06, 2021 1:22 pm, edited 1 time in total.
Topic Author
HomeStretch
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Re: Restatement of Fidelity Solo 401k Plan Required by 7/31/2022

Post by HomeStretch »

andrino wrote: Tue Jul 06, 2021 1:21 pm … My email states to "please certify that you have adopted your restated Plan by logging in to your account and viewing the message we have posted in the communication center."
I received the same e-mail.
In my communication center message there is a link to "Please confirm that you have adopted your restated Defined Contribution Retirement Plan." That link just redirects me back to the communication center web page and marks the message as read. Did your link direct you to a different website?
I received the same message. The link did not work the first time. Second try clicking the link gave me a screen message that said “Thank you for your response. Information on appointing a successor and other topics may be found at Fidelity.com/restatement.” I took a screenshot. Fidelity told me they will keep an internal list of the “survey responses”. They will not report the information to the IRS.
zorobabel
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Re: Restatement of Fidelity Solo 401k Plan Required by 7/31/2022

Post by zorobabel »

So aside from confirming to Fidelity, there's no need to send those forms anywhere right?
Topic Author
HomeStretch
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Re: Restatement of Fidelity Solo 401k Plan Required by 7/31/2022

Post by HomeStretch »

Right. You, as plan administrator, need to keep signed copies for the plan files and distribute a copy of the updated plan SPD to participant(s).
zorobabel
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Re: Restatement of Fidelity Solo 401k Plan Required by 7/31/2022

Post by zorobabel »

Thanks!
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HomeStretch
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Re: Restatement of Fidelity Solo 401k Plan Required by 7/31/2022

Post by HomeStretch »

If you prefer paper copies, save your printer paper and ink. I just received a mailing from Fidelity that included copies of all restated Solo 401k plan documents accompanying a notice that a restatement was required.
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jpsfranks
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Re: Restatement of Fidelity Solo 401k Plan Required by 7/31/2022

Post by jpsfranks »

I found this thread after receiving the same communication from Fidelity. As with some others in this thread, the link in the communications center did not work for me.

If anyone else encounters this in the future and stumbles across this thread, ensure that you have any popup-blockers disabled when clicking on the link in communication center. With my ad blocker disabled, clicking on the link brought up a popup with a button to agree to the restatement.
sst
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Re: Restatement of Fidelity Solo 401k Plan Required by 7/31/2022

Post by sst »

Important! You need to respond to Fidelity's message by 90 days before it expired. Or, you'll need to send message or call Fidelity to re-send the restatement message to your "communication center".
jingo
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Re: Restatement of Fidelity Solo 401k Plan Required by 7/31/2022

Post by jingo »

Thanks! Disabled ad blocker after reading your post, worked like a charm.
jpsfranks wrote: Tue Nov 09, 2021 1:56 pm I found this thread after receiving the same communication from Fidelity. As with some others in this thread, the link in the communications center did not work for me.

If anyone else encounters this in the future and stumbles across this thread, ensure that you have any popup-blockers disabled when clicking on the link in communication center. With my ad blocker disabled, clicking on the link brought up a popup with a button to agree to the restatement.
boglelogic
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Re: Restatement of Fidelity Solo 401k Plan Required by 7/31/2022

Post by boglelogic »

So for anyone that's completed this, there are 3 different adoption agreements. The instructions state: "Download the adoption agreement(s) that are relevant to you based on the plan(s) you have." How did you choose which agreements to complete?

The adoption agreements are:

Money Purchase Plan Adoption Agreement (PDF)
Profit Sharing Plan Adoption Agreement (PDF)
Self-Employed 401(k) Plan Adoption Agreement (PDF)

I'm not sure if I have to complete one, two, or all three. It seems like there is some overlap.

My original adoption agreement was titled "The Fidelity Retirement Plan -- Profit Sharing/Standardized 401(k) Plan Adoption Agreement No. 003" (I completed that when transferring an i401k from TDA to Fidelity which, as I understood, was basically amending the TDA plan to be a Fidelity plan). I don't believe it was paired with a Money Purchase Plan though (at least that option wasn't checked on the original Fidelity adoption agreement). The name of the plan on my original Fidelity adoption agreement was "EMPLOYER NAME IND 401K". I thought this was synonymos with "self-employed 401k", but the term "self-employed" wasn't actually used in the Fidelity adoption agreement at the time.

So would I just complete the "Profit Sharing Plan Adoption Agreement (PDF)" or just the "Self-Employed 401(k) Plan Adoption Agreement (PDF)"? or both?

Thanks for any clarification.
Sleepless
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Re: Restatement of Fidelity Solo 401k Plan Required by 7/31/2022

Post by Sleepless »

HomeStretch wrote: Tue Jun 15, 2021 2:02 pm ...
As Plan Administrator for my Solo 401k plan, I called Fidelity’s retirement plan group to discuss the restatement requirement. The Fidelity representative said the IRS requires such plans to be updated every six years. The restatement period is not based on the age of one’s plan but rather the IRS-mandated cycle. The current cycle runs from 8/1/2020 to 7/31/2022. Failure to comply by 7/31/2022 may result in penalty or possible revocation of a plan's tax favored status.
Since the plan docs are forms that you fill and keep to yourself, how does the IRS know whether or not you restate the plan by the deadline
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Artful Dodger
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Re: Restatement of Fidelity Solo 401k Plan Required by 7/31/2022

Post by Artful Dodger »

Sleepless wrote: Wed Jun 01, 2022 8:52 pm
HomeStretch wrote: Tue Jun 15, 2021 2:02 pm ...
As Plan Administrator for my Solo 401k plan, I called Fidelity’s retirement plan group to discuss the restatement requirement. The Fidelity representative said the IRS requires such plans to be updated every six years. The restatement period is not based on the age of one’s plan but rather the IRS-mandated cycle. The current cycle runs from 8/1/2020 to 7/31/2022. Failure to comply by 7/31/2022 may result in penalty or possible revocation of a plan's tax favored status.
Since the plan docs are forms that you fill and keep to yourself, how does the IRS know whether or not you restate the plan by the deadline
Unless you’re audited, they won’t know. It’s like a lot of benefit / welfare plans, they assume you’re following the rules. If you’re audited, they’ll ask for the original docs, restated docs, make sure you’re following the administrative requirements, filing your 5500, etc.
livesoft
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Re: Restatement of Fidelity Solo 401k Plan Required by 7/31/2022

Post by livesoft »

I submitted my TDAmeritrade Solo 401(k) restatement docs today via Secure Message. I got an acknowledgement of receipt by a REAL PERSON two minutes later. BTW, the instructions that I received with the docs were quite clear and easy to follow.
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SpideyIndexer
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Re: Restatement of Fidelity Solo 401k Plan Required by 7/31/2022

Post by SpideyIndexer »

I didn't receive a secure message related to the restatement. Minutes ago, I spoke to a Fidelity rep who assured me that no online or paper confirmation from me is required if I didn't receive a message to that end.
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HomeStretch
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Re: Restatement of Fidelity Solo 401k Plan Required by 7/31/2022

Post by HomeStretch »

SpideyIndexer wrote: Tue Jun 14, 2022 3:50 pm I didn't receive a secure message related to the restatement. Minutes ago, I spoke to a Fidelity rep who assured me that no online or paper confirmation from me is required if I didn't receive a message to that end.
Do you mean that you didn’t receive a message that your plan needs to be restated or do you mean that you did the restatement online and didn’t receive a submission confirmation?
TXGator
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Re: Restatement of Fidelity Solo 401k Plan Required by 7/31/2022

Post by TXGator »

We filled this out last year and then received the packet again this year - was there a new restatement or was it just a reminder package?
SpideyIndexer
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Re: Restatement of Fidelity Solo 401k Plan Required by 7/31/2022

Post by SpideyIndexer »

HomeStretch wrote: Tue Jun 14, 2022 4:20 pm
SpideyIndexer wrote: Tue Jun 14, 2022 3:50 pm I didn't receive a secure message related to the restatement. Minutes ago, I spoke to a Fidelity rep who assured me that no online or paper confirmation from me is required if I didn't receive a message to that end.
Do you mean that you didn’t receive a message that your plan needs to be restated or do you mean that you did the restatement online and didn’t receive a submission confirmation?
I received a mailing that a restatement to the IRS is occurring. The Fidelity rep informed me Fidelity is no longer sending messages to most plan participants which require acknowledgement. This may be a function of the start date of the plan.
knightrider
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Re: Restatement of Fidelity Solo 401k Plan Required by 7/31/2022

Post by knightrider »

So the, "Self-Employed 401(k) Adoption Agreement No. 001" from Fidelity I only need to complete for my own records? This is confusing because at the bottom of the form it says:
Did you sign the form and include any necessary documents?
Send the ENTIRE form and any account application(s) to
Fidelity Investments.
I have a solo 401k that should be as simple as it gets. So not even sure I understand the point of this whole exercise. A lot of the language and questions make no sense to me. What does this even mean in English:
an amendment and restatement of a Basic Plan Document No. 04 Adoption Agreement previously
executed by the Employer. With the execution of this restatement, the Trust Agreement formerly
within Basic Plan Document No. 04 is hereby removed to become a separate, independent Trust
Agreement without altering the substance thereof.
I guess we can always count on the IRS and Fidelity to make things as complicated as possible for Average Joe's..
livesoft
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Re: Restatement of Fidelity Solo 401k Plan Required by 7/31/2022

Post by livesoft »

TXGator wrote: Tue Jun 14, 2022 4:27 pm We filled this out last year and then received the packet again this year - was there a new restatement or was it just a reminder package?
I don't know. I had something similar happen with my TDAmeritrade 401(k) restatement. I procrastinated after receiving the materials early this year and sent them back in late June and got an acknowledgement that all was OK. Then 3 days later, I got another packet in the mail with an early June date of the exact same materials. I figured they had gone through their i401(k) accounts and found many who had not done anything, so they put the wheels in motion to send the packets out again and I had just happened to send mine back in that interval.

If you want Peace of Mind, then you should contact your i401(k) custodian (e.g. Fidelity or TDAmeritrade) and not Bogleheads.org.
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Topic Author
HomeStretch
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Re: Restatement of Fidelity Solo 401k Plan Required by 7/31/2022

Post by HomeStretch »

knightrider wrote: Tue Jul 19, 2022 9:41 am … I guess we can always count on the IRS and Fidelity to make things as complicated as possible for Average Joe's..
It may seem that way (and I agree that the required plan document language can be hard to interpret) but, having administered 401k plans at a couple public companies, in comparison mainstream no-fee Solo 401k plans are a bargain and require very little time to administer. Solo 401k plans are an amazing product for the self-employed and I hope they continue to be offered.
Caduceus
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Re: Restatement of Fidelity Solo 401k Plan Required by 7/31/2022

Post by Caduceus »

livesoft wrote: Tue Jul 19, 2022 9:56 am
TXGator wrote: Tue Jun 14, 2022 4:27 pm We filled this out last year and then received the packet again this year - was there a new restatement or was it just a reminder package?
I don't know. I had something similar happen with my TDAmeritrade 401(k) restatement. I procrastinated after receiving the materials early this year and sent them back in late June and got an acknowledgement that all was OK. Then 3 days later, I got another packet in the mail with an early June date of the exact same materials. I figured they had gone through their i401(k) accounts and found many who had not done anything, so they put the wheels in motion to send the packets out again and I had just happened to send mine back in that interval.

If you want Peace of Mind, then you should contact your i401(k) custodian (e.g. Fidelity or TDAmeritrade) and not Bogleheads.org.
Hey Livesoft, you might want to check with TDAmeritrade. For other brokerages, they re-sent it because the amendments did change. It was a huge hassle because folks who had already submitted the restatement successfully had to do it again, even if, like you, they submitted it very recently. The subsequent restatement is mandatory, not optional. I'm not sure if this is what applies to your situation. It's possible TDAmeritrade got it right the first time, unlike other brokerages, but better to check and get it right, IMO.

You can compare the materials. There are a couple of pages that are different.
livesoft
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Re: Restatement of Fidelity Solo 401k Plan Required by 7/31/2022

Post by livesoft »

Thanks, I will recheck, but I did review the pages and they looked verbatim the same.
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formsneeded
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Re: Restatement of Fidelity Solo 401k Plan Required by 7/31/2022

Post by formsneeded »

I adopted the solo 401 k in 2002. I got divorced and didn't know about readopting. My husband used to do the paperwork. Is there any place I can get the adoption forms for the last 20 years? It's only me in my plan so no-one is impacted but me
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HomeStretch
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Re: Restatement of Fidelity Solo 401k Plan Required by 7/31/2022

Post by HomeStretch »

formsneeded wrote: Wed Apr 05, 2023 8:27 pm I adopted the solo 401 k in 2002. I got divorced and didn't know about readopting. My husband used to do the paperwork. Is there any place I can get the adoption forms for the last 20 years? It's only me in my plan so no-one is impacted but me
Contact your Solo 401k provider to discuss the situation. Generally, the provider handles the restatement process with the plan sponsors who have adopted its pre-approved plan (i.e., a prototype or volume submitter plan).

My understanding is that the IRS can assess penalties or disqualify your plan if you miss a restatement cycle deadline. There is an IRS correction program. Your provider or an internet search may give your more details.
formsneeded
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Re: Restatement of Fidelity Solo 401k Plan Required by 7/31/2022

Post by formsneeded »

Thank you for your advice. As it turns out I am only missing 2016 forms but Fidelity doesn't keep old forms.
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