401(k) Training & Certification Program

Introduction To Qualified 401(k) Plans

• Overview
• Basic Qualification Requirements
• Failure To Meet Qualification Requirements
• Governance
• Benefits / Advantages Of 401(k) Plans
• Types Of Plans
• What Is A 401(k) Plan?
• Types Of 401(k) Plans
• Benefits To Employees: Federal & State Income Tax Savings
• Benefits To Employees: Special Tax Treatment On Plan Distributions
• Benefits To Employees: Investment Flexibility
• Benefits To Employees: Plan Loans And Hardship Withdrawals
• Legal Requirements

Eligibility & Coverage Requirements

• Overview
• Age & Service Requirements
• Exclusions
• Drafting Eligibility Requirements
• Entry Dates
• Rehired Employees & Other Special Eligibility Rules
• Controlled Groups
• Affiliated Service Groups
• Employee Classification
• Directors, Partners, & Subchapter S Owners
• Service Crediting For Eligibility
• Coverage Testing
• Determining The Employer
• Leased Employees
• Hour Of Service
• Common Law Employees
• Other Employee Exclusions

Plan Design & Documentation

• Record Retention
• Administrative Roles & Responsibilities
• Plan Design Considerations
• 401(k) Plan Feasibility
• Plan Feasibility: Employee Expectations & Demographics
• Plan Feasibility: Cost Considerations
• Plan Feasibility: Administrative Requirements
• Plan Document Options: Prototype Plan
• Plan Document Options: Custom Designed Plan
• Plan Document Options: Volume Submitter Plan
• Plan Documentation: Summary Plan Descriptions
• Plan Documentation: Determination Letter
• Plan Documentation: Other Plan Documentation
• Bonding
• Roles & Responsibilities: Plan Sponsor
• Roles & Responsibilities: Plan Administrator
• Roles & Responsibilities: Plan Trustee or Custodian
• Roles & Responsibilities: Investment Manager
• Roles & Responsibilities: Other Outside Professionals
• Plan Documentation: Plan Documents
• Investment Options
• Investment Options: Closed Menu
• Investment Options: Open Menu
• Investment Options: Managed Portfolio
• Investment Options: Unrestricted Platform
• Investment Policy Statement
• Administrative Options For Outsourcing

Plan Investments

• Investment Options: Stocks (Equities)
• Investment Options: Mutual Funds
• Investment Options: Guaranteed Investment Contracts
• Other Investments
• Buying Funds Through An Insurance Company
• Valuation Of Plan Assets
• Investment Options: Bonds (Fixed Income)
• Mutual Fund Types
• Investment Options: Cash Equivalents
• Investment Options: Employer Stock
• Asset Allocation
• Investment Policy Statement
• Monitoring Investments
• Valuation Of Plan Assets: Balance Forward Valuation
• Valuation Of Plan Assets: Daily Valuation
• ERISA 404(c)
• Re-Balancing Investments
• Participant Direction Operation & Administration
• Blackout Period
• Overview
• Choosing Investment Options
• Investment Decisions: Participant Directed
• Participant Direction Through Technology
• Investment Decisions: Brokerage Accounts
• Investment Decisions: Trustee Directed
• Investment Decisions: Limited Investment Direction

Communication & Enrollment

• Setting Communication Objectives
• Stages Of Communication
• Sources Of Communication Materials
• Mandated Communications
• Non-English Speaking Employees
• Beneficiary Designation & Pre-Retirement Survivor Annuity Forms
• Automatic Enrollment
• Overview
• The Successful Communication Program
• A Word On Communications And Legal Liability
• Ongoing Communication Efforts
• Employee Meetings
• The Meeting Agenda
• Enrollment & Administrative Forms
• Enrollment Form/Salary Reduction Agreement
• Investment Direction Form
• Election Of Benefit Form
• Election Of Direct Rollover For A Qualifying Distribution
• Special Tax Notice Regarding Plan Payments
• Other Forms
• Electronic Disclosure
• Measuring Results

Vesting

• Minimum Vesting For Non-Elective Contributions
• Vesting Requirements
• Calculating Vesting Service
• Forfeitures
• Minimum Vesting For Matching Contributions
• Calculating Vesting Service: Vesting Computation Period - Plan Year Method
• Calculating Vesting Service: Vesting Computation Period - Employment Year Method
• Vesting Service & Termination Of Employment
• Determining A Participant’s Vested Account Balance
• Full Vesting And Other Special Vesting Rules
• Overview

Compliance With The Nondiscrimination Rules

• Who Is A Highly Compensated Employee? — A Recap
• Test #1: The ADP Test
• The ADP Safe Harbor
• The Testing Process
• ADP Testing Specifics
• Overview
• Prior Year Testing Method
• Current Year Testing Method
• ADP Safe Harbor Plan Administration
• Safe Harbor 401(k) Plans
• The ACP Safe Harbor
• SIMPLE Plans
• SIMPLE-IRAs
• SIMPLE 401(k)
• Re-characterizing Excess Contributions
• Testing Period Options
• Correcting Failed Tests
• Refunding Or Forfeiting Excess Amounts
• Classifying Excess Contribution As Catch-Up Contributions
• Corrective Contributions
• Discrimination Tests
• Test #2: The ACP Test

Top-Heavy 401(k) Plans

• Determining Key Employees
• Top-Heavy Minimum Contributions
• Overview
• Top-Heavy Determination
• Accelerated Vesting
• Top-Heavy Testing

Distributions & Taxation

• Hardship Distributions
• The “Safe Harbor” Hardship Standard
• Determining The Amount Available For A Hardship Distribution
• Taxation Of Hardship Distributions
• Qualified Domestic Relations Orders
• Requesting A Distribution
• Taxation
• Required Notice
• Income Tax Withholding
• Reporting Distributions
• Appeal Process
• Payment Of 401(k) Benefits Upon Retirement
• Required Minimum Distributions
• Severance Of Employment: Vested Benefits
• Overview
• Death Benefits
• Disability Benefits
• In-Service Distributions
• In-Service Withdrawals Of Salary Deferrals
• The “General Standard” Hardship Standard
• Rollover Distributions
• Qualified Joint & Survivor Annuity
• Qualified Pre-Retirement Survivor Annuity
• Participant Loans
• Participant Loans: Terms
• Participant Loans: Loan Re-Payments
• Tax Treatment Of Distributions: An Overview
• Severance Of Employment: Non-Vested Benefits
• Automatic Cash Outs
• Form Of Benefits

Plan Expenses

• Estimated Plan Costs
• Enforcement
• Overview of Plan Expenses
• Types Of Expenses
• Plan Administration Fees
• Investment Fees
• Service Fees & Expenses
• Weigh Cost Versus Benefit
• Fees & Fiduciary Responsibility

Reporting Requirements

• Small Plan Or Large Plan Status
• Overview
• Supplemental Schedules
• 5500 Report Requirements
• EFAST Program
• Due Date Exceptions
• Audit Report
• Summary Annual Report
• 5500 Due Date
• Penalties For Non-Compliance With Reporting

Fiduciary Responsibility

• Named Fiduciary
• Determining Who Is A Fiduciary
• Avoiding Prohibited Transactions
• Penalties For Prohibited Transactions
• Prohibited Transaction Exemptions
• Overview
• Correcting Prohibited Transactions
• Prohibited Transactions
• Penalties For Breach Of Duty
• Basic Fiduciary Responsibilities
• Personal Liability
• Identifying Plan Fiduciaries - In General

Amendments, Terminations, and Plan Mergers

• Overview
• Types of Amendments
• Amendments To Change Plan Provisions
• Amendments To Correct Plan Defects
• Amendments Due To Law Changes
• Protected Benefits
• Nondiscrimination
• The Process Of Amending A Plan
• Plan Termination
• Steps In Terminating A Plan
• Partial Termination
• Plan Mergers