Legal Compliance

Federal law requires your company to comply with IRS regulations on proper documentation and reporting.

Listed below is a checklist of the documents needed to properly support your plan:

1. Board Resolution  (for corporations, goes in your corporate minute book)
   Authorizes adoption of the plan and documents this action for your corporate minutes (if incorporated).
   - Adoption of the plan must occur before pre-tax contributions are implemented!
2. Plan Document  (goes in your permanent file for future reference)
   Outlines definitions, requirements, rights, and responsibilities of participants.
   - The plan must be administered strictly in accordance with the Plan Document.
3. Summary Plan Description  (give a copy to each participant; also file permanently)
   Explains plan provisions and enforceable rights in simple language.
   - A copy must be distributed to each participant within 60 days of plan implementation.
   - The SPD must be distributed again if material modifications are made to the plan.
   - It is not sufficient to merely announce that a copy is available upon request.
   - The U.S. Department of Labor can require submission of this SPD upon their request.

This publication is designed to provide accurate and authoritative information regarding the subject matter covered. It is provided with the understanding that the publisher is not engaged in rendering legal, accounting, or other professional services. If legal advice or other expert assistance is required, the services of a competent professional person should be sought.