Plan Documents

ASC offers a variety of Cycle 4 defined contribution pre-approved plan types. All of the documents use the basic plan document/adoption agreement (AA) format. Except for the “Standardized” Profit Sharing/401(k) Plan, all of the plans are considered “nonstandardized” plans under IRS procedures. ASC’s Cycle 4 defined contribution pre-approved plan offerings include:

Profit Sharing/401(k)/Money Purchase Pension Plan – (Full AA Version)

This nonstandardized plan is ASC’s most flexible and comprehensive plan, allowing maximum design options for the plan sponsor. The AA reflects all options available. This plan accommodates all plan design options allowed under the IRS procedures for pre-approved plans, including cross-tested plan designs.

New for Cycle 4: Money Purchase Pension Plan provisions will be included in this AA and the separate Money Purchase Pension Plan AA will no longer be offered. ASC’s Cycle 3 Nonstandardized Profit Sharing/401(k) Plan and Cycle 3 Nonstandardized Money Purchase Plan will both restate to this AA in DGEM.

Profit Sharing/401(k)/Money Purchase Pension Plan – (Collapsed AA Version)

Same features as above, except when generated, the AA will include only the options elected, generally resulting in a much shorter AA than the Full AA Version.

Standardized Profit Sharing/401(k) Plan (Full AA version)

This plan is designed to satisfy the IRS requirements for a “standardized” plan. While it provides a higher level of reliance on the plan’s opinion letter, it does not allow the design flexibility of a “nonstandardized” plan. For example, the definition of compensation is restricted to total compensation and generally all employees (other than statutorily excludable employees) must be eligible for the plan. Other limitations also apply. This plan provides a more streamlined (and simpler) approach to plan design.

New for Cycle 4: The collapsed AA version is no longer offered.

Owners (Solo) Profit Sharing/401(k) Plan

This nonstandardized plan is designed for business owners and generally is exempt from the requirements of Title I of ERISA. The plan is appropriate for certain sole proprietors, partnerships and LLCs that do not have common law employees and that want to maintain a profit sharing and/or 401(k) plan (e.g., a solo 401(k) plan).

Governmental Profit Sharing/Grandfathered 401(k)/Money Purchase Pension Plan

This nonstandardized plan is designed for governmental entities and Indian tribal governments adopting or maintaining a profit sharing plan, including a plan with “grandfathered” 401(k) plan features, or a money purchase pension plan. (Note that such entities MUST use this pre-approved plan document and CANNOT use the nonstandardized Profit Sharing/401(k)/Money Purchase Pension Plan.) The plan is exempt from the requirements of Title I of ERISA and the coverage and nondiscrimination requirements of the Internal Revenue Code.

New for Cycle 4: Money Purchase Pension Plan provisions will be included in this AA and the separate Governmental Money Purchase Pension Plan AA will no longer be offered. ASC’s Cycle 3 Governmental Nonstandardized Profit Sharing/401(k) Plan and Cycle 3 Governmental Nonstandardized Money Purchase Plan will both restate to this AA in DGEM.

Employee Stock Ownership Plan (ESOP)

This nonstandardized plan is designed for entities adopting or maintaining an ESOP. The plan includes nonleveraged, leveraged and 401(k) (KSOP) features.

Non-Electing Church Profit Sharing/401(k)/Money Purchase Pension Plan

This nonstandardized plan is designed for “non-electing” churches adopting or maintaining a profit sharing plan, including a plan with 401(k) plan features, or a money purchase pension plan. (Note that non-electing churches MUST use this pre-approved plan document and CANNOT use the nonstandardized Profit Sharing/401(k)/Money Purchase Pension Plan.) The plan is exempt from the requirements of Title I of ERISA.

New for Cycle 4: Money Purchase Pension Plan provisions will be included in this AA and the separate Non-Electing Church Money Purchase Pension Plan AA will no longer be offered. ASC’s Cycle 3 Church Profit Sharing/401(k) and Cycle 3 Church MPP Plans will both restate to this AA in DGEM.

For more information, please email sales@asc-net.com.