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:
- 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!
- 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.
- 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.