PS Plan and Retroactive Amendment


Under the SECURE Act, employers can adopt a profit-sharing plan for the prior year, as long as the plan is established before the employer’s tax-filing deadline, including extensions. This means that an employer could potentially adopt a profit-sharing plan as late as October 15th of the following year.

Effective on 1/1/2024 under the SECURE Act 2.0, employers will also could retroactively amend their company retirement plan up until their tax return due date, plus extensions. The amendments can be applied to employer stock bonus plans, pension plans and profit-sharing plans to increase benefits. Matching contribution amendments are not covered under this provision.

The ability for retirement plan sponsors to retroactively amend their existing plan or adopt a profit-sharing plan provides greater flexibility and potential tax benefits. However, employers should carefully consider the implications of this provision and consult with a financial advisor or tax professional before making any decisions. For more information on how you can maximize your company retirement plan for you and your employees, contact the Innovative Investment Fiduciaries team at (856)-242-3328 or email

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