What Is a “Prototype Plan” and What Does It Mean That 401k Easy Online Includes One?
A prototype plan is a document describing and defining every aspect of a master 401k plan. The IRS analyzes this master and deems it “approved” or “disapproved.” Once approved, the master can be used to create any number of 401k plans that fall within the approved specifications. Included in the prototype plan can be a certain amount of plan flexibility, such as a variety of possible participation eligibility requirement. With 401k Easy Online, you have IRS-approved flexibility with your plan’s participation eligibility parameters, with whether or not to offer employer contributions and if so what type (matching, profit-sharing, and/or qualified nonelective) and at what rate, with whether you want to offer 401k loans, and more. See the Plan Options tab within our Order page for a complete list of customization flexibility currently open to clients using our IRS-approved prototype plan. Ongoing plan qualification depends on, among other things, that your plan pass its annual IRS complia
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