Plan Design and Installation

Plan design is the first and most essential task in the creation and operation of a qualified plan. Documents must be drawn up with specifications tailored to meet the individual client’s objectives. This legal document creates a “qualified” retirement program and directs its operation. When a plan is qualified, all contributions will be deemed tax deductible.

The plan and trust are divided into two sections: (1) Plan Provisions, and (2) Trust Provisions. The plan provisions relate to the plan’s operation and administration such as eligibility requirements, allocation of contributions, determination of projected retirement benefits, plan and participant termination procedures, etc. The trust provisions explain the procedures for administering the plan assets, including: the fiduciary responsibilities of the trustee(s), the types of permissible investments, the accounting of trust assets, and authorization to direct the funds held under the trust.