As part of the adoption agreement, an employer sponsoring a plan 401 (k) (a plan sponsor) chooses the rules of its retirement plan or benefits. These include parameters such as: in addition to defining these important plan concepts, all the information that governs how your plan works, including the information that forms the basis of your plan document, will be included in the acceptance agreement. This makes it an invaluable source of information. If you change the pre-approved plan document or acceptance agreement, With the exception of certain changes authorized by the IRS (see 2015-36 revenue procedure, Sections 5 and 14 and the 2017-41 Revenue Procedure 2017-41, Section 8), the IRS may view the plan as a new personalized plan. In other words, the plan document is so different from the plan approved in advance that the IRS has verified and approved that it is being treated as a brand new plan. If your plan is customized, you can no longer rely on the notice or advice letter from the previously approved document provider. If you want to get an IRS backup on your modified plan document, you can request your own survey letter (on Form 5300) if you wish. See What is a favorable destination letter? It`s from here that we start in the meat of the adoption agreement – all the plan options and parameters of your plan. This last page, necessary to implement the adoption agreement, confirms all the information and selections that have been made in the adoption agreement and receives the signature of your plan sponsor to secure everything. As we are about to conclude the adoption agreement, our sections are much shorter…

So we`re doing our part to make things a little easier. In this easy-to-read Plan 401 (k) reference manual, we have almost everything you need to know about adoption agreements 401 (k): the rules for establishing and coordinating contributions to your retirement plan 401 (k) are defined in this section of the adoption agreement. Here you will find information on the comparison of employer contributions and profit-sharing formulas. 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. Our adoption agreement is complemented by Section J, the last single page of the adoption agreement, which exists primarily for signatures.