Financial/Retirement Professionals » Business Retirement Professionals

401(k) Plan Document

A 401(k) plan is established by the employer by adopting a written plan document. This is a legal arrangement that defines the powers and responsibilities of the various parties involved and gives details of all of the terms of the plan.

Because the plan document normally contains technical language to comply with IRS regulations, the Department of Labor requires that an abbreviated plain-language version of the plan document called the "Summary Plan Document" or "Summary Plan Description" must be made available to participants and must be furnished to all employees who are eligible to participate in the plan within 120 days of plan adoption or their date of hire.