A qualified retirement plan sponsored by a financial institution. It may be adopted by executing a written agreement. A prototype is generally more flexible than the IRS Form 5305 or 5305-A and may have additional special features. Also called a master pension plan.
Likewise, what is a prototype plan document 401k?
With a pre-approved (or prototype) plan document, there is a master or volume submitter document, which spells out the main plan requirements and features, and an adoption agreement with provisions plan sponsors have elected for which they have a choice.
- 401(k).
- Solo 401(k).
- 403(b).
- 457(b).
- IRA.
- Roth IRA.
- Self-directed IRA.
- SIMPLE IRA.
Considering this, what is a master and prototype plan?
Master and Prototype (M&P) An M&P plan consists of: a basic plan document containing non-elective provisions. an adoption agreement containing elective provisions that an adopting employer selects. a trust or custodial account (which may or may not be included in the basic plan document)
What is a volume submitter plan?
What is a Volume Submitter Plan (VSP)? A VSP is a type of plan that, once approved by the IRS, gives assurance that the plan document meets the legal and regulatory requirements of a 403(b). Employers who have adopted a VSP that has been approved by the IRS know they can rely on the plan document being compliant.
Does qualified plan need IRS approval?
A qualified retirement plan meets IRS requirements and offers certain tax benefits. … Employers offer retirement plans to attract and retain employees. Taking contributions out of a retirement plan before retirement age can often result in tax penalties.