“covered service,” the periods of service of a member for which a contribution to the trust fund must be made in accordance with the provisions of the collective agreement or any other written contribution agreement. These are four basic measures necessary to have a 401 tax system (k): “employer contributions” refer to hourly contributions that an individual employer must make in accordance with a collective agreement, including, before January 1, 2014, both contributions to the normal and supplementary sub-accounts and, on January 1, 2014, the employer sub-account. Employer contributions are also the hourly contributions that an individual employer must pay on the regular sub-account, the supplementary sub-account or the sub-account of the employer`s contribution, under a written contribution contract between an employer and the directors. “Election contribution” refers to the contribution (including the contribution to care, as defined below) that a participant decides on the basis of a written choice filed with Carpenters Trusts, as authorized under a collective agreement or the terms of a written contribution agreement between an employer and a director, for which the plan is prospectively reduced. The annual contribution limits required to maintain the plan`s qualified status in accordance with the Section 401 code, point a), are described in Article 10.3 and Appendix A – Effective Deferral Percentage Review. Provide plan information to employees – When you prepare your 401 (k) plan, you must inform employees who have the right to participate in the plan of the benefits and requirements of your plan. A summary description of the plan (SPD) is the most important vehicle to inform participants and beneficiaries of the plan and its operation. The SPD is usually established with the plan document. You must send it to all plan participants. In addition, you can provide your staff with information that highlights the benefits of joining your 401 (k) plan.
Staff benefits – such as pre-tax contributions on a 401 (k) plan (or exempt distributions to Roth 401 (k) s), employer contributions (if you choose to do so) and income deferred to the interest rate – help to highlight the benefits of participating in the plan. “Parent Plan” refers to another pension plan with which Carpenters` withdrawal plan from Western Washington entered into a written reciprocity agreement. Organize a Plan Wealth Trust Fund – The assets of a plan must be maintained in a user-friendly manner to ensure that assets are used exclusively for the benefit of participants and their beneficiaries. The trust must have at least one agent who makes contributions, planning investments and distributions on and from Plan 401 (k). Since the financial integrity of the plan depends on the agent, this is one of the most important decisions you will make when developing a 401 (k) plan. If you implement your plan through insurance contracts, the contracts should not be covered by fiduciary terms. “rollover sub-account,” an account opened by administrators for each participant for amounts transferred from other qualified plans under Article 10.7. Rollover sub-accounts are managed in the form of unit values, under which a participant`s rollover sub-account must be equal: “Participant” means an employee, associate collaborator, former employee or former associate employee, on whose behalf contributions are required or authorized under the terms of the collective agreement or other written contribution contract.