Certified Plan Sponsor Professional (CPSP) Practice Exam

How often must an IRS pre-approved plan document be restated?

1. Every three years

2. Every five years

3. Every six years

4. Every ten years

The correct answer is: Every six years

An IRS pre-approved plan document must be restated every six years to maintain compliance with IRS requirements. This restatement process is essential because it allows plan sponsors to incorporate any changes in IRS regulations and guidance that may have occurred since the last restatement. It also helps ensure that the plan remains up to date with current laws and can effectively address the needs of the plan participants. The six-year cycle is organized within the framework set by the IRS, which offers a structured cycle for restatements. This timeframe not only assists plan sponsors in keeping their documents current but also helps minimize potential compliance issues. Other options suggest shorter or longer intervals for restatement, which do not align with the established guidelines provided by the IRS. Therefore, the six-year requirement is the correct timeframe for restating IRS pre-approved plan documents.