This section is quite simple. Other important information about the plan, rules and details that did not include it in the standard adoption agreement can be presented here. Depending on the nature of your plan, this section may or may not be used. The 401 (k) acceptance agreement is the document that defines the specifics of your plan 401 (k). The adoption agreement is established by the third-party administrator (TPA) using the basic plan document. The basic plan document contains all possible options that can be selected from the document options in this document. Just because you want to move part of your salary into a Roth doesn`t mean the plan is necessary to offer a Roth account. For example, not all plans allow Roth-Solo 401k contributions or voluntary after-tax contributions. Even not all solo 401k plan allows participants to lend or invest in alternative investments. If you are in one of these categories, you must (re) visit Adoption Agreement 401 (k) to define the terms of a new retirement plan.
Adoption agreements may vary from supplier to supplier, but should follow a similar structure containing basic and important information. In general, the acceptance agreement is divided into sections with the main aspects of a plan. Solo 401k plans must be written, as all qualified retirement plans. The written plan requirement means that a 401k plan must be included in a formal plan document. The «Basic Plan» document is the «Prototype Plan and Confidence» document, which defines the rules of the Solo 401k plan, including the types of investments in which solo 401k can be invested, 401k solo credit rules, distribution rules, etc. My Solo 401k Financial Compliance Officer is available at all times to answer questions and help you understand the rules of Solo 401k plan. The rules for establishing and coordinating contributions to your retirement plan 401 (k) are set out in this section of the adoption agreement. Here you will find information on the comparison of employer contributions and profit-sharing formulas. You can accept a new pension plan approved in advance at any time to launch a plan. If you use a pre-approved pension plan, you must adopt a new plan at least every six years. Payments are often an important part of the possession of 401 (k). In this section of the adoption agreement, the circumstances applicable to payments are organized and chosen.
This section ranges from rules for difficult cases to potential loans for performance plan purposes.