Information to Assist You When Completing the Self-Directed Plan Document and Adoption Agreement - Individual 401(k) Plans
The information below will help to provide you with information to use when completing our new GUST-approved plan document and adoption agreement for Self-Directed Individual 401(k) Plans.
Index:
- New Plan/Transfer Plan
- Employer's Legal Name
- Plan Name
- Plan's Original Effective Date
- Yearly Date
- Fiscal Year
- Named Fiduciary
- Plan Administrator
- Predecessor Employer and Prior Employer
- Eligible Employee
- Highly Compensated Employee
- Entry Requirements
- Entry Date
- Pay
- Elective Deferral Contributions
- Matching Contributions
- Employer Contributions
- Contribution Requirements
- Compensation
- Voluntary Contributions/Rollover Contributions
- Investments
- Vesting Percentage
- Vesting Service
- Equivalencies
- Withdrawal Benefits
- Retirement and Start of Benefits
- Forms of Distribution
- Adopting Employers/Signature Page
| Item A - New / Transfer | ||
| Use this procedure if you are opening a new plan or amending an existing plan that has already been amended for GUST. | ||
| If the plan is.. | Then.. | |
| A new plan | The first box is checked. | |
| Transferring to Principal Trust or is an existing Principal Trust plan already amended for GUST. | The second box is checked and the amendment effective date must be completed. The amendment effective date is the date that the employer wants this amended adoption agreement to take effect. |
|
| Item B - Employer's Name | ||
| We want the name of the company. | ||
| Item C - Plan Name | ||
| We want the name of the plan. | ||
| Item D - Plan's Original Effective Date | ||
| If the plan is.. | Then.. | |
| New | Any date during the current plan year. Note: In most cases, the employer will use the first day of the plan year. Although the employer has until the last day of the plan year to open the plan, the employer can choose to make the plan effective retroactive to the first day of the plan year. Pay earned before the effective date cannot be included. |
|
| Transferring to Principal Trust or being amended. | The date the plan was originally effective. The amendment effective date would be indicated in Item A. | |
| Item E - Yearly Date | ||
The employer writes the:
|
||
| Item F - Fiscal Year | ||
| If the fiscal year is.. | Then.. | |
| The same as the year plan | Write the month and day of the last day of the plan year in this item. | |
| Not the same as the plan year | Write the month and day of the last day of the tax year in this item. | |
| Item G - Named Fiduciary | ||
| Nothing needs to be completed in Item G. When the employer signs the adoption agreement, the employer is agreeing with the statement that the employer is the named fiduciary. | ||
| Item H - Plan Administrator | ||
| Nothing needs to be completed in Item H. When the employer signs the adoption agreement, the employer is agreeing with the statement that the employer or someone appointed by the employer is the Plan Administrator. | ||
| Item I - Predecessor Employer / Prior Employer | ||
| Nothing needs to be completed in Item I. This selection is not available. | ||
| Item J - Eligible Employee | ||
| Nothing needs to be completed in Item J. When the employer signs the adoption agreement, the employer is agreeing with the statement that all employees are eligible employees. | ||
| Item K - Highly Compensated Employee | ||
| Nothing needs to be completed in Item K. When the employer signs the adoption agreement, the employer is agreeing that a highly compensated employee is as defined in Section 1.02 of the document; an alternate definition of a highly compensated employee is not allowed. | ||
| Item L - Entry Requirements | ||
| Nothing needs to be completed in Item L. When the employer signs the adoption agreement, the employer is agreeing that no age or service requirement applies. | ||
| Item M - Entry Date | ||
| Nothing needs to be completed in Item M. When the employer signs the Adoption Agreement, the employer is agreeing with the statement that the entry dates will be monthly. | ||
| Item N - Pay | ||
| Nothing needs to be completed in Item N. When the employer signs the adoption agreement, the employer agrees with the definition of pay as it is defined in our plan document and adoption agreement: Pay includes elective deferrals and is based on a plan year. | ||
| Item O - Elective Deferral Contributions | ||
| Nothing needs to be completed in Item O. When the employer signs the adoption agreement, the employer agrees with the statement that deferrals can be 100% of pay. | ||
| Item P - Matching Contributions | ||
| Nothing needs to be completed in Item P. This selection is not available. | ||
| Item Q - Employer Contributions | ||
| Nothing needs to be completed in Item Q. The profit sharing contribution is discretionary. An employer can fluctuate the contribution each year and choose 0% to 25%. The employer will allocate the contribution as of the last day of the plan year, but has up to and including the tax filing extension to make the contribution. | ||
| Item R - Contribution Requirements | ||
| Nothing needs to be completed in Item R. When the employer signs the adoption agreement, the employer agrees that all employees will be eligible for an allocation of the employer contribution. | ||
| Item S - Compensation | ||
| If the employer... | Then compensation means.. | |
| Does not check box (2)(a) or (b) | W-2 Pay | |
| Checks Box (2)(a) | 415 Safe-Harbor Compensation | |
| Checks Box (2)(b) | 3401 (a) Wages | |
| Item S - Defined Benefit Plans | ||
| If the employer... | And/Or the effective date of this amendment is... | Then the employer... |
| Maintains or ever maintained a qualified defined benefit plan | Prior to January 1, 2000, | Describes the method used to satisfy annual additions on the attachment S (4). |
| Maintains or ever maintained a qualified defined benefit plan | After January 1, 2000, | Does not have to complete attachment S (4). |
| Item S - Top-Heavy Requirements | ||
| If the employer maintains... | Then the employer... | |
| Only one plan and there are key employees | Makes sure that each non-key employee receives a minimum top- heavy contribution. The percentage does not have to exceed the lesser of the largest percentage contributed to a key employee or 3%. | |
| A defined benefit plan and there are key employees |
|
|
| Item T - Voluntary / Rollover Contributions | ||
| Nothing needs to be completed in Item T. When the employer signs the adoption agreement, the employer is agreeing with the statements that voluntary contributions will not be allowed and that rollover contributions will be allowed. | ||
| Item U - Investments | ||
| Nothing needs to be completed in Item U. When the employer signs the adoption agreement, the employer is agreeing that he will abide by the terms of the Principal Trust Company Trust Agreement, member's accounts shall be self-directed, loans are permitted, but life insurance is not permitted. | ||
| Item V - Vesting Percentage | ||
| Nothing needs to be completed in Item V. When the employer signs the adoption agreement, the employer is agreeing that each employee's account will be 100% vested. | ||
| Item W - Vesting Service | ||
| Nothing needs to be completed in Item W. Employer contributions are 100% vested at all times. | ||
| Item X - Equivalencies | ||
| Nothing needs to be completed in Item X. When the employer signs the adoption agreement, the employer is agreeing to base hours of service on hours the employee actually works or is entitled to be paid. | ||
| Item Y - Withdrawal Benefits | ||
| Nothing needs to be completed in Item Y. When the employer signs the adoption agreement, the employer agrees to withdrawal benefits outlined in this Item of the adoption agreement. | ||
| Item Z - Retirement and Start of Benefits | ||
| If the plan requires... | Then... | |
| Age as the only factor when determining NRA and that age is 65 | Nothing needs to be completed. | |
| Age and years of participation in the plan when determining NRA | Box 1 (a) is checked and an age up to 65 is written in the first blank and years up to 5 is written in the second blank. | |
| Item AA - Forms of Distribution | ||
| Nothing needs to be completed in Item AA. When the employer signs the adoption agreement, the employer is agreeing that all distribution options offered by the plan will be allowed. | ||
| Item AB - Adopting Employers / Signature Page | ||
| Nothing needs to be completed in Item AB. This selection is not available. | ||
