How to Set Up a New 401(k) Plan for Your Business
A Slavic401k Retirement Plan Representative will be your first point of content. The representative will spend time with you explaining the fees associated with adopting and maintaining the plan and will assist in helping you decide on the plan features (match, profit sharing, vesting, eligibility).
Our representative will also provide you with an overview of the plan setup process and ongoing process for plan administration. If you have an existing retirement plan, we will review the prior plan documents to ensure the new plan does not eliminate any protected benefits.
Plan Documentation
Adoption Agreement – You select all the plan features needed to set up a plan, including: effective date of the plan, age and service requirements, matching contribution formula (if any), profit sharing allocation formula (if any), and vesting schedule.
Safe Harbor Addendum – Is required only if the company adopts a safe harbor plan design. This document will specify the type of safe harbor contribution for the plan.
Plan Evaluation Survey ‐ This includes information about company ownership, lineal relatives, highly compensated employees, officers of the company, prior plans sponsored, and ownership of other companies.
Board Resolution ‐ Official document indicating the owners/officers of the company are authorizing the adoption of the plan.
401(k) Disclosure Statement – Discloses certain information regarding compliance testing, fees, and other plan legalities.
Census Information ‐ A list of all active employees including: their name, date of birth, date of hire, social security number, and annual compensation.
Plan Processing and Enrollment
After all of the necessary documentation has been submitted and reviewed, the new plan will be processed. Processing usually takes about 15 business days. During this time, a Slavic401k retirement plan representative will hold an employee enrollment meeting to explain the plan and assist plan participants with enrollment. Once processing is complete, your new 401(k) is ready to go.
Have an Existing 401(k) Plan?
In most cases, we are able to transfer your existing 401(k) plan into your new plan with us. More information on plan transfers here.
