Your 401k Easy Docs Prototype Customization Options

The below chart shows the 401k plan customization options allowed by 401k Easy Docs and typically recommended for a first-time plan.

Understanding the potential effect each option has on a 401k plan's popularity and thus its worth cannot be universally mapped out, as such vary with company size, worker preferences and other company-specific parameters. We are happy to discuss potential effects with you. We recommend that interested parties submit the appropriate Order Form and use the "Unsure. Please contact..." buttons to indicate about which items you need more information. As explained in the No Money Due at This Time: The Order Fulfillment Process section, submitting an Order Form in no way obligates your company to placing an order.

401K PLAN PARAMETERS IRS ALLOWS... RECOMMENDATION FOR MOST Small 401k PLANS*
PARTICIPANT ELIGIBILITY:
Age Requirement
Anything from none to 21 years of age 21 years of age (we recommend that participation begin on the first day of the first month after the person meets the plan's eligibility requirements)
PARTICIPANT ELIGIBILITY:
Length of Service Requirement
Anything from none to 1 year of service 3 months of age (we recommend that participation begin on the first day of the first month after the person meets the plan's eligibility requirements)
PARTICIPANT ELIGIBILITY:
Union Membership
OK to exclude employees whose service is governed by a collective bargaining agreement Exclude union employees
EMPLOYER CONTRIBUTIONS
(Matching, Profit-Sharing and/or Qualified Nonelective)
Cannot make total contributions to any employee account over the annually-adjusted total allowed contribution amount. For more information, see "401k Contribution Guidelines and Limitations" within our 401k Basics page. Allowed in all forms but not mandatory. Contact us to discuss your particular situation.
VESTING OF EMPLOYER CONTRIBUTIONS Full, immediate vesting

OR

anything less stringent than either:

(a) No vesting earned until the person has participated in the plan for five years, then 100% vesting after five years, or

(b) Seven Year Formula:
0% vested for the first 2 years of participation
20% vested after 3 years
40% vested after 4 years
60% vested after 5 years
80% vested after 6 years
and 100% vested after 7 years of participating in the plan.
Full, immediate vesting

OR

Five Year Formula:
20% vested after 1 year of participating in the plan
40% vested after 2 years
60% vested after 3 years
80% vested after 4 years
100% vested after 5 years of participating in the plan.
INVESTMENT OPTIONS Almost anything goes (stocks, bonds, annuities, company stock, GIC insurance contracts, and more), but selection offered MUST fulfill plan sponsor's "fiduciary responsibility" with respect to offering ample variety, among other things, of 401k investment opportunities Both individual no-load mutual fund families (including no-load institutional mutual funds) and self-directed brokerage accounts are allowable; see our Investments pages for information that will help you determine which (perhaps both) best suit your 401k needs.
401K LOANS Inclusion or exclusion is allowed. Allowed but not mandatory. Not recommended for a plan's first year of operation.
AUTOMATIC (aka, Passive) ENROLLMENT Allowed by the IRS, but the legal system has not yet had occasion to rule on possible infringements upon employee rights. Allowed but not mandatory. No recommendation; consult your legal advisor.

*Understanding the potential effect each option has on a 401k plan's popularity and thus its worth cannot be universally mapped out, as such vary with company size, worker preferences and other company-specific parameters. We are happy to discuss potential effects with you and recommend that interested parties submit the appropriate order form and use the "Unsure. Please contact..." buttons to indicate about which items you need more information. As explained within "No Money Due at This Time: The Order Fulfillment Process" × No Money Due at This Time: The Order Fulfillment Process

A 401k Easy Docs representative will call you within 24 hours of your submission of an online order form. The representative will explain and help you with understanding any items you marked as "Unsure" in the order form, and to answer any additional questions you have.

After all your questions are answered, if you want to proceed with your order you will be able to pay the one-time setup fee over the phone using your Visa, MasterCard, or by mail using a check; there is a five-day holding period on all check orders.

As soon as we receive your setup fee, we will prepare your official 401k Adoption Agreement and Summary Plan Description, and send them to you for your review and approval.
(see above), submitting an order form in no way obligates your company to placing an order.