Fall 2009 issue of Horizons

GENERAL TOPICS

Retirement Plan Document

executed document and related amendments should be filed by the employer with the Internal Revenue Service based on a five-year cycle to obtain a determination letter that the form and content meet all the requirements. 2. Prototype — This document is submitted by a prototype plan sponsor to the IRS for its review and approval; the IRS will issue an opinion letter indicating that it meets all the requirements. There are two components: a basic plan document, which includes the substantive provisions, and a corresponding adoption agreement that an employer uses to elect the relevant plan design provisions for its plan. The adoption agreement enables the employer to check a box and choose the applicable feature it wants for its plan from a variety of available options. A prototype plan sponsor can maintain one basic plan document and have multiple adoption agreements (i.e., 401(k) plan, profit sharing plan, money purchase pension plan, etc.). 3. Volume submitter — This specimen or sample plan document is submitted by a volume submitter plan sponsor to the IRS for its review and approval. The IRS will issue an advisory letter

Training Session

By Wayne A. Isaacs, JD, CPA, CEBS

Background

An employer sponsoring a qualified retirement plan must ensure that the plan continues to maintain its tax-qualified status by keeping the plan document current and in compliance with required laws and regulations. There are three types of plan documents that an employer may use to comply: 1. Individually designed — This customized document is normally drafted by an attorney based on the employer’s plan design specifications. The

21 u fall 2009 issue