Do all 401k plan documents need to be filed and approved by the IRS?
The IRS issues favorable determination letters after having reviewed the 401k plan provisions for compliance with the law. Standardized 401k prototype plan documents are completely preapproved through the issuance of “favorable opinion letters” and do not require an individual filing by the adopting employer. The IRS opinion letter is included with the document as part of a plan implementation kit. Non-standardized plans require a short form filing by the adopting employer. The IRS reviews only the adoption agreement and upon approval grants an individual determination letter to that employer. Individually drafted (custom) 401k plans require a long form filing with an IRS review of the entire plan document.
