* DEADLINE TO HAVE PAPERWORK SUBMITTED IN GOOD ORDER IS JUNE 17TH, 2022 *
TRPC is currently preparing IRS-required “Cycle 3” plan document restatements, which must be completed by the July 31, 2022 deadline. Below is a description of the Cycle 3 plan document and TPA services that TRPC provides for Flexible 401(k) plans.
The fee schedules for Plan Document Services and Third Party Administration Services are provided in the Service Elections Form under “Getting Started” below.
“Cycle 3” Plan Document Restatement and Ongoing Plan Document Maintenance Program
Through our “Plan Document Maintenance Program” TRPC will coordinate the preparation of the IRS-required “Cycle 3” plan document restatement and will maintain the tax-qualified status of the plan document in the future. The Plan Document Maintenance Program includes all of the following:
Plan Document “Restatements” – Every six years, the IRS requires that all retirement plan documents be “restated” to a document format that incorporates all legislative and regulatory updates that were enacted during the prior six-year period.
Required “Interim” Amendments – Whenever new retirement plan legislation is enacted, it is required to be incorporated into the plan document with what’s called an “interim” amendment (until the legislation is made part of the next plan document “restatement”).
“Employer-Requested” Amendments – Whenever the plan’s sponsoring employer wishes to change any of the plan’s provisions/features, those changes will be made at the employer’s request with a formal plan amendment.
Employee Notifications and Disclosures – Employees are required to be provided with a Summary Plan Description and other ongoing written notifications/disclosures describing the plan’s provisions/features and their rights under the plan.
Third Party Administration (TPA) Services
In addition to requiring a complete, current, signed plan document, 401(k) plans are subject to annual compliance testing and reporting requirements to preserve the plan’s tax-qualified status. As a 401(k) plan’s TPA, TRPC will provide a full suite of administration and consulting services, including the following:
- Annual employee census data reconciliation
- Employer contribution calculations (if applicable)
- All compliance testing, including coverage, nondiscrimination, top heavy, contribution limitations, and maximum deductible contributions testing
- Annual Trust accountancy and reconciliation (by employee and by money type)
- Distribution and loan administration
- Tax reporting on distributions
- Annual Form 5500 and Form 8955-SSA
Paperwork to get started
In order for us to get started setting up the service arrangement for your 401(k) plan we will require the items listed below.
Service Elections Form (click the link to download)
Please select the services you’d like TRPC to provide and either 1) apply a digital signature to the PDF or 2) print, sign/date, and scan to PDF format. Return a signed copy at the secure link below.
TRPC Plan Setup Form (click the link to download)
Please complete the highlighted fields and return the completed form to us at the secure link below. (It does not need to be signed/dated.)
Authorization Agreement for Direct Payments via ACH (click the link to download)
Please complete all fields and either 1) apply a digital signature to the PDF or 2) print, sign/date, and scan to PDF format. Return a signed copy at the secure link below.
Current Plan Document “Adoption Agreement”
Please also provide a complete, signed copy of your current plan document “Adoption Agreement”, along with any amendments you’ve made to the plan.
Return Your Completed Paperwork
Please return the completed Service Elections Form, TRPC Plan Setup Form, Authorization Agreement for Direct Payments via ACH, and your current plan document “Adoption Agreement” (if you have it) at the secure link here. Please return all items together at the same time rather than returning them separately at different times.
Cash Balance Plans
Cash balance plans are a type of defined benefit retirement savings plan that enables business owners to make significant tax-deductible contributions each year and to accumulate significant retirement savings on a tax-deferred basis. While 401(k) plans – as defined contribution retirement plans – limit total annual contributions to $58,000 (indexed), annual contributions to a cash balance plan generally depend on the owner’s age and income and often exceed $200,000. Most self-employed individuals who have a cash balance plan also maintain a 401(k) plan.
If you’d like to learn more about cash balance plans please contact Scott Cloud, MBA, CPC at [email protected] or 615-515-4419.
* DEADLINE TO HAVE PAPERWORK SUBMITTED IN GOOD ORDER IS JUNE 17TH, 2022 *