Retirement Plan Document
Ever used a remote control with a dead battery or tried to use a remote control for your stereo system to change a TV channel? Frustrating, isn’t it? Your plan document is like a remote control for your employee retirement savings program. Without it, operating a successful retirement plan with ease and peace of mind is a daunting task.
Just as a remote control needs to be charged up and available to operate that nice flat screen TV, the plan document needs to be updated for changes in the tax laws affecting retirement plans. Equally as important is having your plan document file organized and complete. Here are some tips on what to look for in your plan file:
- Original plan documents and all adoption agreements. The adoption agreement is not a complete plan document and must be accompanied by a basic plan document, which provides in-depth details on how the plan should operate.
- All subsequent plan amendments or restatements, both mandatory IRS amendments (used to bring the plan up-to-date with the latest laws) and discretionary amendments (used to make changes to the plan to align it with the business needs and employee benefit package offering).
- IRS opinion, advisory or determination letter.
- Board of Directors’ resolutions and minutes, or similar records related to the plan.
- Summary Plan Description is a plain English explanation of the retirement plan, its benefits, features, and participant rights.
- Summary of Material Modifications is a document that explains changes to plan's terms as a result of an amendment.
- Notices and Disclosures provided to participants in the course of plan operation.
Keep these documents indefinitely as a part of your plan’s permanent record.
How We Help
Our client portal, www.ceteraplanportal.com, has a section dedicated to plan documents. When changes are made, documents are uploaded to the portal. Our consultants review your plan on an annual basis to help you meet these important document requirements. That said, it's a good practice to review your files in the first quarter of the year, which is generally the time you gather all the necessary information for the annual plan compliance and reporting requirements.
If, upon completion of the view, you find that a document is missing, let us know – we will review an appropriate correction path with you. We can also assist you with a mini plan document audit and help you establish an internal record-keeping system.
Click here to request a call from your consultant or call our office at (888) 926-0600.
For Plan Sponsor Use Only. Not for Distribution to Participants.
This information is offered for general education purposes only. Cetera Retirement Plan Solutions does not provide investment, tax, or legal advice. Plan sponsors are encouraged to consult their own independent advisor for any investment, tax, or legal advice and to determine how to best meet the needs of the plan and its participants. Cetera Retirement Plan Specialists may provide third party administrative services (TPA) to clients of financial advisors, who are affiliated with its family of broker-dealers and registered investment advisers. Cetera Retirement Plan Specialists is part of Cetera Financial Group®. Cetera Retirement Plan Specialists and its related entities operate independently and there is no requirement for retirement plan clients of Cetera Financial Group firms to engage with Cetera Retirement Plan Specialists.