
EntryformV309 XLS Approval of Master or Prototype and Regional Prototype Defined Benefit Plan
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People also ask
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What is the difference between a volume submitter plan and a prototype plan?
One difference between a prototype plan and a volume submitter plan is that if modifications are made to the plan, then the employer may generally submit the plan for a determination letter using IRS Form 5307 (as distinguished from IRS Form 5300 which requires a much higher IRS user fee and is generally required if an ...
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What is a preapproved 401k plan?
An employer may adopt a pre-approved retirement plan sold by a service provider, financial institution or advisor. Pre-approved plans allow limited customization but give the employer the reassurance of an IRS-approved plan.
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What is the difference between 401k and PSRP?
401(k) The key difference between a profit sharing plan and a 401(k) plan is that only employers contribute to a profit sharing plan. If employees can also make pre-tax, salary-deferred contributions, then the plan is a 401(k).
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What is a pre-approved plan?
Pre-approved plans are either Master and Prototype (M&P) or Volume Submitter (VS). The IRS issues an opinion letter to an M&P plan sponsor if the plan document meets all legal requirements. The sponsor then makes its plan available for employers to adopt.
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What is an IRS opinion letter for a 401k?
The IRS issues an opinion letter to an M&P plan sponsor if the plan document meets all legal requirements. The sponsor then makes its plan available for employers to adopt. The IRS issues an advisory letter to a VS practitioner if the VS plan document meets all legal requirements.
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What is a prototype plan document 401k?
A Prototype plan document is essentially a "ready-made" plan that's been pre-approved by the IRS. These plans are designed by financial institutions, insurance companies, or third-party administrators (TPAs) to provide a streamlined, cost-effective solution for employers[1].
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What are the 2 basic types of 401k plans?
Types of 401(k)s There are various types of 401(k) plans, but the two main types are a traditional 401(k) and a Roth 401(k).
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What is a pre-approved 401k plan?
An employer may adopt a pre-approved retirement plan sold by a service provider, financial institution or advisor. Pre-approved plans allow limited customization but give the employer the reassurance of an IRS-approved plan.
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