401(k) Plans

A 401(k) plan is a defined contribution plan that allows contributions to grow tax-deferred until retirement. These plans are available to for-profit companies and non-profit entities.

401(k) plans are protected under the rules and regulations of the Internal Revenue Service and the Department of Labor. However, these rules and regulations allow room for flexibility of options within a plan including eligibility requirements, contributions, investments, distributions, loans, hardship withdrawals, beneficiary options and more.

As long as the IRS and DOL allow a feature, the plan can choose to implement it. Then, within the plan provisions, the employee who is participating in the plan can choose to take advantage of the many features available under their specific 401(k) plan. An option which must be included, however, is the pre-tax deferral of salary. Without this feature the plan cannot qualify as a 401(k).

    

Learn more

  Plan Document

  Eligibility

  2007 Contribution Limits

  401(k) Features

  Distributions