401(k) PLAN DOCUMENT — SUMMARY PLAN DESCRIPTION
Plan Name: [________________________________]
Plan Number: [____]
Employer Identification Number (EIN): [________________________________]
Effective Date: [__/__/____]
TABLE OF CONTENTS
- Plan Sponsor Information
- Plan Administrator
- Eligibility and Enrollment
- Contributions
- Vesting Schedule
- Investment Options
- Distributions and Withdrawals
- Loans
- Beneficiary Designation
- Claims and Appeals
- Plan Amendment and Termination
- ERISA Rights Statement
- Key Contacts
PLAN SPONSOR INFORMATION
Plan Sponsor (Employer):
Company Name: [________________________________]
Address: [________________________________]
City, State, ZIP: [________________________________]
Phone: [________________________________]
Plan Trustee:
Name/Entity: [________________________________]
Address: [________________________________]
Fiscal Year End: [________________________________]
Plan Type: ☐ Traditional 401(k) ☐ Safe Harbor 401(k) ☐ Automatic Enrollment 401(k) ☐ SIMPLE 401(k)
PLAN ADMINISTRATOR
Name: [________________________________]
Title: [________________________________]
Address: [________________________________]
Phone: [________________________________] Email: [________________________________]
Agent for Service of Legal Process: [________________________________]
ELIGIBILITY AND ENROLLMENT
3.1 Eligible Employees: All employees who have:
☐ Attained age [____] (minimum 21 under ERISA § 202)
☐ Completed [____] months/year(s) of service
☐ Are not in an excluded class: [________________________________]
3.2 Entry Dates: ☐ Immediate upon eligibility ☐ First day of month following eligibility ☐ Semi-annual (January 1 / July 1) ☐ Quarterly
3.3 Automatic Enrollment:
☐ Yes — Default deferral rate: [____]% ☐ With auto-escalation of [____]% per year up to [____]%
☐ No — Voluntary enrollment only
3.4 Eligible employees may enroll by completing enrollment forms and selecting contribution rates and investment elections.
CONTRIBUTIONS
4.1 Employee Elective Deferrals:
- Pre-tax deferrals: ☐ Yes ☐ No
- Roth (after-tax) deferrals: ☐ Yes ☐ No
- 2026 Annual Limit: $[________] (under age 50) / $[________] (age 50+ catch-up)
4.2 Employer Contributions:
☐ Matching Contributions: [____]% of the first [____]% of compensation deferred
☐ Safe Harbor Match: 100% of first 3% + 50% of next 2% (basic safe harbor)
☐ Safe Harbor Nonelective: 3% of compensation for all eligible employees
☐ Discretionary Profit Sharing: Determined annually by the Employer
☐ None
4.3 Compensation Definition: ☐ W-2 wages ☐ IRC § 415 safe harbor compensation
4.4 Annual Additions Limit (IRC § 415(c)): The lesser of 100% of compensation or $[________] for 2026.
VESTING SCHEDULE
5.1 Employee Deferrals: Always 100% vested.
5.2 Employer Contributions Vesting:
☐ Immediate (100% vested)
☐ 3-Year Cliff: 0% until 3 years of service, then 100%
☐ 6-Year Graded: 0/20/40/60/80/100% over 6 years
☐ 2-Year Cliff (Safe Harbor plans)
☐ Other: [________________________________]
5.3 A Year of Vesting Service requires [________] hours of service (not less than 1,000 per ERISA § 203).
5.4 Forfeitures of nonvested amounts shall be used to: ☐ Reduce employer contributions ☐ Pay plan expenses ☐ Allocate to remaining participants.
INVESTMENT OPTIONS
6.1 Participants may direct the investment of their accounts among the following options:
☐ Mutual funds
☐ Target-date/lifecycle funds
☐ Company stock fund
☐ Stable value / money market fund
☐ Self-directed brokerage account
☐ Other: [________________________________]
6.2 A complete list of investment options, fees, and performance is available at [________________________________].
6.3 Default Investment (QDIA): ☐ Target-date fund based on participant's anticipated retirement date ☐ Balanced fund ☐ Managed account
DISTRIBUTIONS AND WITHDRAWALS
7.1 Distributions are available upon:
☐ Separation from service (any age)
☐ Attainment of age [____] (Normal Retirement Age)
☐ Disability (as defined in the Plan)
☐ Death
☐ Plan termination
7.2 In-Service Withdrawals:
☐ Hardship withdrawals (per IRC § 401(k)(2)(B)(i)(IV) and Treas. Reg. § 1.401(k)-1(d)(3))
☐ Age 59-1/2 in-service withdrawals
☐ Emergency expense distributions (SECURE 2.0 § 115, up to $1,000)
☐ Domestic abuse victim distributions (SECURE 2.0 § 314)
7.3 Required Minimum Distributions (RMDs): Begin April 1 following the later of age [____] or retirement (age 73 per SECURE 2.0 § 107; age 75 beginning 2033).
7.4 Distribution Forms: ☐ Lump sum ☐ Installments ☐ Direct rollover to IRA or other qualified plan ☐ Annuity (if available)
LOANS
8.1 Participant Loans: ☐ Available ☐ Not available
8.2 If available:
- Maximum loan: Lesser of $50,000 or 50% of vested account balance (IRC § 72(p))
- Minimum loan: $[________]
- Maximum number of outstanding loans: [____]
- Interest rate: [________________________________]
- Repayment term: Up to [____] years (up to [____] years for principal residence)
- Repayment method: Payroll deduction
BENEFICIARY DESIGNATION
9.1 Participants should designate a beneficiary using the Plan's beneficiary designation form.
9.2 Spousal Rights: If the participant is married, the spouse is the automatic beneficiary. A different beneficiary requires the spouse's notarized written consent per ERISA § 205.
CLAIMS AND APPEALS
10.1 Claims Procedure: Benefit claims must be submitted in writing to the Plan Administrator.
10.2 The Plan Administrator shall respond within [____] days of receiving a claim (90 days per 29 CFR § 2560.503-1).
10.3 If denied, the notice shall include the specific reasons, plan provisions relied upon, and information needed.
10.4 Appeal: Participants have [____] days (at least 60) to file a written appeal. The Plan Administrator shall decide the appeal within [____] days (60 days per regulations).
10.5 Participants may file suit under ERISA § 502(a) after exhausting the claims and appeals process.
PLAN AMENDMENT AND TERMINATION
11.1 The Plan Sponsor reserves the right to amend or terminate the Plan at any time.
11.2 Upon termination, all participants become 100% vested in their accounts per ERISA § 411(d)(3) and IRC § 411(d)(3).
ERISA RIGHTS STATEMENT
As a participant in the [PLAN NAME], you are entitled to certain rights and protections under ERISA:
☐ Right to Information: Examine plan documents, SPD, annual reports (Form 5500), and other materials at the Plan Administrator's office.
☐ Right to Benefits: Receive a statement of accrued benefits at least once per year.
☐ Right to Prudent Management: Plan fiduciaries must act in the interest of participants and beneficiaries per ERISA § 404.
☐ Right to Enforce: If your claim is denied, you have the right to file suit under ERISA § 502(a).
☐ Right to PBGC Protection: Note: Defined contribution plans such as 401(k) plans are not covered by PBGC insurance.
For questions about your rights, contact the Employee Benefits Security Administration (EBSA) at 1-866-444-EBSA (3272) or www.dol.gov/ebsa.
KEY CONTACTS
| Role | Name | Phone | |
|---|---|---|---|
| Plan Administrator | [________________] | [________________] | [________________] |
| Recordkeeper | [________________] | [________________] | [________________] |
| Trustee | [________________] | [________________] | [________________] |
| Investment Advisor | [________________] | [________________] | [________________] |
| ERISA Counsel | [________________] | [________________] | [________________] |
Sources and References
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