Solo 401K Adoption Agreement Template

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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. 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. This includes parameters such as: Groups the important features of the plan document, including your benefits and commitments under the plan. My Solo 401k Financial Compliance Officer will check with you with the „Description of the Summary Plan“ document so that you understand all the provisions of the Solo 401k plan. It`s from here that we start in the meat of the adoption agreement – all the plan options and parameters of your plan. The 401k solo plan document will dictate what the independent owner can or cannot do with her 401k solo pension funds. The Solo 401k plan document provider indirectly determines the features available in the Solo 401k plan. So before you open a 401k solo for your standalone business, first define what you`re planning with your 401k Solo 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.

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? Can the Solo 401k Plan document be established to allow for immediate distribution of 401k solo annual contributions? 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.

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