Designing a qualified retirement plan is based on the applicable requirements and standards imposed by ERISA, as well as the rules of related federal agencies, namely the Department of Labor and Internal Revenue Service. Therefore, each plan must be carefully drafted to ensure it meets the businessowner's retirement plan objectives and conforms to compliance requirements.
Some of the basic provisions a retirement plan must cover include:
- Participation eligibility;
- Vesting;
- Normal retirement age;
- Compensation;
- Deferral contributions;
- Employer contributions (matching/profit sharing);
- Forfeitures;
- Distributions;
- Loans;
- Life insurance; and
- Transfers/rollovers.
