New IRS Deadline: What Not-for-Profits Need to Know About 403(b) Plan Cycle 2 Restatement

The Internal Revenue Service (IRS) requires periodic restatements of pre-approved retirement plan documents to ensure that plans comply with current laws and regulations. This is the second mandated six-year restatement cycle for 403(b) plans, commonly referred to as "Cycle 2."

If your organization uses a pre-approved plan document (as most not-for-profits do), you must update your plan document to reflect recent legislative and regulatory changes. Failing to complete the restatement by the 2026 deadline could jeopardize your plan's tax-favored status.

Not-for-profits (NFPs) often rely on 403(b) plans to attract and retain talent while aligning with their mission-driven goals. But because many NFPs operate with lean administrative staff, key compliance deadlines like this one can slip under the radar. That is where a proactive approach becomes essential.

Please select this link to read the complete article from OSAP Mission Partner Clark Schaefer Hackett Business Advisors.