401(k) Retirement Plan Design and Implementation
Retirement Plan Design and Implementation
401(k)
Plan Document
What it is
Qualified retirement plans are required to have a written plan document. There are many types of plan documents ranging from standardized prototypes to individually designed (least expensive to most expensive). Your design choices will dictate which type of document is necessary.
How Midwest Pension helps you
Midwest Pension utilizes a plan document that allows for greater flexibility in design than a standardized plan, without the high expense of an individually designed document. Our staff assists you through the design process by analyzing your objectives and making recommendations for plan provisions that will best suit your needs.
Summary Plan Description
What it is
The Summary Plan Description (SPD) describes benefits offered under the plan, the rights of participants, and other important provisions such as the plan’s eligibility requirements and vesting schedule all in easy to understand language.
How Midwest Pension helps you
Midwest Pension provides you with an original SPD for distribution to your employees as necessary. We will also provide you with specific IRS instructions for electronic distribution of the SPD.
Special Notice to Eligible Participants
What it is
When the employer elects to have a specific 401(k) plan (e.g. SIMPLE, Safe Harbor, Automatic Enrollment) certain information is required to be reported to plan participants using a Notice.
How Midwest Pension helps you
Midwest Pension prepares and provides you with the initial Notice for distribution to your employees that inform participants of the employer’s contribution and/or features associated with an employee’s enrollment. Our office also monitors the annual ongoing Notice deadlines and provides you with subsequent Notices as necessary.
Notice to Interested Parties
What it is
The employer is required to inform all employees, known as interested parties, that it intends to file an application for determination as a “qualified” plan with the IRS.
How Midwest Pension helps you
Midwest Pension prepares all of the forms necessary for the plan document submission to the IRS, including the Notice to Interested Parties for you to post. After the forms are submitted to the IRS by our office, we track receipt of the plan’s favorable determination letter.
Fidelity Bond
What it is
A bond must be obtained to insure the plan against fraudulent acts by plan fiduciaries. A plan fiduciary is any person or entity that handles the plans assets including, but not limited to, the administrator, trustee, and employer.
How Midwest Pension helps you
Midwest Pension will determine if your business has need for a Fidelity Bond. If a bond is required we will track the amount of your fidelity bond each year and notify you if the bond is no longer a sufficient amount for the plan’s asset size. Visit our Links Page for a link to Colonial Surety Company, who can establish a Fidelity Bond for your plan.
Trust’s Tax Identification Number
What it is
The plan should have a separate Tax Identification Number (TIN), which is used to report federal tax withholding on participant distributions from the plan (e.g., Form 1099-R, Form 1096, and Form 945).
How Midwest Pension helps you
Midwest Pension will assist you with the TIN application process.
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