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Plan Provisions

 

 

Whether you are setting up a new retirement plan or continuing to administer a retirement plan that the company already provides, there are many options that should be considered. The plan provisions need to meet the needs of the employer and the employees. Below are the major provisions that must be considered.​

  • Type of Plan

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  • Sponsoring Employer

    • Company Structure​

    • Controlled Group

    • Affiliated Service Group

    • Ownership

    • Officers

    • Family Relationships

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  • Years of Service

    • All Years​

    • Years from Plan Effective Date

    • Age Limit

    • Predecessor Employer

    • Hours of Service

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  • Eligibility

    • Plan Inception

    • Months of Service​

    • Hours of Service

    • Age Limit

    • Participation Date

    • Union Employees

    • Leased Employees

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  • Cash or Deferred Arrangement [401(k) Provisions]

    • Traditional Elective Deferrals​

    • Roth Elective Deferrals

    • Limitations

    • Change Periods

    • Catch Up Contributions

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  • Employer Nonelective Contributions
    (Profit Sharing)

    • Hours​

    • Last Day of Employment

    • Benefits for Death, Disability, Retirement

    • Allocation Method (Proportional, Integrated, Age-Weighted, Comparability, etc.)

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  • Matching Contributions

    • Hours​

    • Last Day of Employment

    • Benefits for Death, Disability, Retirement

    • Matching Formula

    • Required or Discretionary

    • Compensation Used

    • Timing of Allocation & Deposit

    • Catch Up Eligible

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  • 401(k) Safe Harbor Contributions

    • 3% Required​

    • 3% Discretionary

    • Basic Matching Formula

    • Enhanced Matching Formula

    • Timing of Allocation & Deposit

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  • Nondeductible Employee After-Tax Contributions

    • Necessary​​

    • Limit

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  • Deemed IRA Contributions

    • Necessary​

    • Limit

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  • Forfeitures

    • Timing​

    • Allocation Method

    • Allocation Requirements

    • Use of Forfeitures

  • Vesting

    • Years of Service​

    • Age Limit

    • Death, Disability, Retirement

    • Source Contribution

    • Schedule

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  • Compensation

    • Allocation, Section 415, Section 414(s)​

    • W-2 Compensation

    • Exclusions

    • Beginning of Year or Plan Participation

    • Maximum

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  • Retirement

    • Age​

    • Service

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  • Disability

    • Social Security Administration​

    • Unable to Perform Definition

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  • Distribution Provisions

    • Timing of Payment (Immediate, After End of Year, Break-in-Service, Held, etc.)​

    • Consent (Participant, Spouse, Cash Out, etc.)

    • Payment Method (Annuity, Lump Sum, Installment, etc.)

    • Payment Type (Cash, Rollover, In-Kind, etc.)

    • Hardship (Sources, Restrictions, Reasons, etc.)

    • In-Service (Sources, Restrictions, Reasons, etc.)

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  • Rollover into Plan

    • Participants Only​

    • Employees

    • In-Plan Roth

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  • Loans (If Permitted)

    • Source​

    • Security

    • Maximums

    • Minimum

    • Interest Rate

    • Period

    • Withdrawal Method

    • Number of Loans

    • Reasons

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  • Top Heavy

    • Required Minmum​

    • Vesting

    • Non-Key and/or Key

    • Multiple Plans

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  • Investment

    • Trustee Directed Pooled fund​

    • Participant Directed Mutual Funds

    • Participant Directed Investment Accounts

    • Daily Record Keeping Service

    • Types of Investments

    • Employer Securities

    • Insurance

    • ERISA 404(c) Plan

    • Valuation Periods

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