What is a prototype plan document?
A prototype plan consists of a basic plan document, an adoption agreement, and, unless the basic plan document incorporates a trust or custodial account agreement the provisions of which are applicable to all adopting employers, a trust or custodial account document.
What is a volume submitter plan vs prototype plan?
One difference between a prototype plan and a volume submitter plan is that if modifications are made to the plan, then the employer may generally submit the plan for a determination letter using IRS Form 5307 (as distinguished from IRS Form 5300 which requires a much higher IRS user fee and is generally required if an …
What is the basic plan document?
IRS language refers to a “basic” plan document when describing the part of the document that contains the non-optional required provisions of the Employee Retirement Income Security Act and the Internal Revenue Code.
What is a preapproved plan?
A pre-approved retirement plan is a plan sold to employers by a document provider such as a financial institution or benefits practitioner.
What is a mass submitter?
A “mass submitter” of a pre-approved plan is a U.S. business that submits opinion letter applications on behalf of at least 30 unaffiliated providers that have “word-for-word identical” plans to the mass submitter’s pre-approved plan.
What is a 401 K plan adoption agreement?
401k adoption agreement is a section of a retirement plan document that allows the employer to choose the provisions that apply to its (employer sponsored) retirement plan.
What is the difference between a plan document and an SPD?
The summary plan description (SPD) is simply a summary of the plan document required to be written in such a way that the participants of the benefits plan can easily understand it. Unlike the plan document, the SPD is required to be distributed to plan participants. Plan amendments must be made to both documents.
What is a determination letter?
A determination letter is a formal document issued by the Internal Revenue Service (IRS) that indicates whether or not a company’s employee benefit plan has been found to meet the minimum legal requirements for special tax treatment.
What is a basic plan document 401k?
The basic plan document contains all the non-elective provisions and can’t include any options or blanks for the employer to complete. The adoption agreement contains the options (and blanks) for the employer to complete and is also where the employer signs the plan.
What is a 401k basic plan document?
The plan document should reflect your organization’s objectives in sponsoring the 401(k) plan, including information such as plan eligibility requirements, contribution formulas, vesting requirements, loan provisions, and distribution requirements. Typically the employer as plan sponsor is the Named Fiduciary.