What Is a Solo 401k Restatement and Why It Matters

If you have a Solo 401k, staying compliant does not end after setup. Plan documents require periodic updates to reflect changing IRS rules. Missing these updates can lead to unexpected consequences.

That is why Solo 401k restatements exist.

In this article, you will learn what a Solo 401k restatement actually is, why it matters, and what to look out for in the latest restatement cycle. If you want to keep your plan running smoothly and avoid unnecessary penalties, it’s important to understand how restatements work and what your responsibilities are as the plan owner.

📌 Also read: How Solo 401k Plans Work for Expats

What Is a Solo 401k Restatement?

A Solo 401k is not a static document. Once it is established, the IRS expects periodic updates to keep it in line with the latest legal and regulatory requirements. These updates are bundled and issued as formal restatements.

A Solo 401k restatement is the process of replacing your plan document with an updated, IRS-approved version. This applies to pre-approved plan documents, which are drafted by plan providers and submitted to the IRS for review. When accepted, the IRS issues an official opinion letter confirming that the document language is compliant when properly used.

Each restatement cycle follows a six-year schedule set by the IRS. If you adopt a Solo 401k through a provider using a pre-approved plan, you must sign a new version of the document package by the deadline tied to that cycle.

📝 Note: Not updating your Solo 401k on time may lead to compliance issues. In some cases, you might need to use the IRS correction program (EPCRS) to fix missed restatement deadlines.

Why Restatements Happen

The IRS uses restatement cycles to make sure retirement plans reflect major law changes in a consistent way. Rather than requiring plans to change piecemeal, providers are instructed to consolidate updates into a fully refreshed document.

The IRS outlines these required changes through Listing of Required Modifications (LRMs). These model provisions help providers write updated plan documents that meet IRS standards. The latest LRM for defined contribution plans was issued in January 2024, and it sets the foundation for the current round of Solo 401k restatements.

Changes that typically trigger restatements come from large federal laws that impact retirement plans. One major example is the SECURE Act, along with later updates like SECURE 2.0, both of which introduced new features and rules that needed to be built into plan documents.

Restatements typically include changes from:

✅ Legislative acts like the SECURE and CARES Acts
✅ IRS guidance or regulatory adjustments
✅ Structural updates required to maintain qualification

📝 Note: Even if your Solo 401k hasn’t changed in how it’s used, you still need to complete a restatement when required. Restatements apply to the document itself, not just to what you do with the plan.

Cycles, Dates, and What Solo Owners Should Check

Solo 401k restatements follow a structured timeline set by the IRS. These cycles ensure plan documents reflect current laws and IRS guidance. As of 2025, we are in Cycle 4, the latest round of mandatory updates for pre-approved defined contribution plans like the Solo 401k.

Cycle 4 began on February 1, 2024, and runs through August 25, 2025. During this time, plan providers submit revised documents to the IRS for approval. Once the IRS completes its review, it will issue opinion letters and announce a formal adoption deadline. Plan owners will then need to sign the new documents within the designated window to stay compliant.

📌 Watch for These 2025 Updates:

📝 Note: The IRS generally releases all Cycle 4 opinion letters at once. This means providers will likely begin sending updated plan documents to Solo 401k owners around the same time. If you have not received yours after the letters are issued, reach out to your provider directly. 

Key 2025 Points to Verify

Not every Solo 401k owner needs to take immediate action—but once opinion letters are released, you will need to review a few items with your provider.

What You Should Confirm

✅ Whether your plan provider has received a Cycle 4 opinion letter.
✅ If your provider has released your Solo 401k restatement package.
✅ Whether the IRS has announced the official adoption deadline for employers.
✅ If any additional required amendments still apply to your specific plan.

What to Avoid

❌ Assuming that no action is required. Restatements are not optional.
❌ Confusing a full restatement with a minor amendment—they serve different purposes.
❌ Waiting until the last minute. Missing the deadline may create compliance issues.

📝 Note: If you miss a restatement deadline or realize that your plan document was not properly updated in the past, you may need to use the Employee Plans Compliance Resolution System (EPCRS). This correction program helps restore your plan’s qualified status, but it may involve extra steps or costs. 

How to Restate Your Solo 401k

Restating your Solo 401k is not just a formality — it’s a legal requirement. The IRS expects all plan sponsors, including self-employed individuals, to adopt new plan documents on time when using a pre-approved plan format. The good news is the process is manageable once you understand each step.

Here’s how to restate your Solo 401k the right way:

Step 1: Confirm Your Plan and Provider Status

Start by reaching out to the company that originally issued your Solo 401k document. Ask which pre-approved plan document your account uses and whether your Cycle 4 restatement package is ready.

📝 Note: The IRS encourages plan sponsors to stay in regular contact with their provider, especially during restatement cycles, to avoid missing deadlines.

Step 2: Request and Review the Restatement Package

Ask your provider for the complete restatement package. This should include:

You do not need to send anything to the IRS, but you should store a copy of the opinion letter with your signed plan documents for your permanent records.

Step 3: Compare Plan Elections Before Signing

The adoption agreement outlines how your plan operates. It’s legally binding, so review it carefully.

Example decisions to confirm:

If your business has changed — for example, if you’re hiring your spouse or changing contribution strategies — this is the time to update your elections so your operations and documents match.

Step 4: Execute and Keep All Documents

Sign and date all required documents, including the restated adoption agreement and any related amendments or policy add-ons.

Keep copies of the following with your plan’s permanent records (digital or paper):

📝 Note: The IRS may request these during an audit or if you need to file corrections later.

Step 5: Align Plan Operations With the New Document

After restating your plan, make sure your day-to-day operations reflect the updated language.

Review how you handle:

If your Solo 401k must file Form 5500-EZ, verify that your records support the filing. Once a plan meets filing thresholds, the IRS requires that it be submitted electronically via EFAST2.

Step 6: Correct Any Missed Updates or Deadlines

If you discover that your plan skipped a prior amendment or missed a restatement deadline, act quickly. Use the EPCRS to fix the issue and protect your plan’s qualified status.

You may qualify for self-correction, or you may need to file under the voluntary correction program. A qualified provider or adviser can help you determine the correct route.

Step 7: Budget for Document Work and Choose Reputable Providers

Plan restatements usually involve a fee, and prices vary depending on your provider. Since your Solo 401k relies on the IRS pre-approved framework, it’s essential to work with a provider that:

📝 Note: Cutting corners on plan documents could lead to expensive compliance problems later. Choosing a reliable provider helps reduce that risk.

What to Do Next to Stay on Track

Restating your Solo 401k does not need to be complicated but it does need your attention. Once your provider releases the Cycle 4 restatement package, take time to review, sign, and align your plan operations accordingly.

Next steps to take:

These steps could help minimize your compliance risk and support smoother plan administration going forward.

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