2.18- 401(k) Plans

A 401(k) is a feature of a qualified profit-sharing plan that allows employees to contribute a portion of their wages to individual accounts.

• Elective salary deferrals are excluded from the employee’s taxable income (except for designated Roth deferrals).

• Employers can contribute to employees’ accounts.

• Distributions, including earnings, are includible in taxable income at retirement (except for qualified distributions of designated Roth accounts).

See the 401(k) Resource Guide for details on 401(k) topics for plan participants and plan sponsors.

Choose a 401(k) Plan

• Choosing a 401(k) plan

• Overview of types of 401(k) plans

• One-participant 401(k) plans

Establish a 401(k) Plan

• Steps to establishing a 401(k) plan

• Types of automatic enrollment

• Automatic enrollment increases and sample plan language

• How to establish designated Roth accounts in a 401(k) plan

Participate in a 401(k) Plan

• Contribution limits

• General guidance on participating in your employer’s plan

Operate and Maintain a 401(k) Plan

• Operating a 401(k) plan

• Mid-year Amendments to Safe Harbor 401(k) Plans and Notices

Correct a 401(k) Plan

• 
  401(k) ChecklistPDF
  Helps you keep your 401(k) plan in compliance with important tax rules.
  
  

• 401(k) Fix-it Guide
  Tips on how to find, fix and avoid common errors in 401(k) plans.

Terminate a 401(k) Plan

Additional resources for 401(k) Plans