401(k) Plan FAQs

+ Who can establish a 401(k) Plan?

+ What is the deadline for establishing a 401(k) Plan?

+ Which employees must be covered by a company’s 401(k) Plan?

+ What types of employer contributions are permissible under a 401(k) Plan?

+ Are employer contributions required under a 401(k) Plan?

+ What is the maximum employer contribution permitted under a 401(k) Plan?

+ What is the maximum employee salary deferral contribution under a 401(k) Plan?

+ What is the deadline for making employer contributions to a 401(k) Plan?

+ Can an employer choose to include a vesting schedule in a 401(k) Plan?

+ What information do employers need to give employees concerning the company’s 401(k) Plan?

+ Are there restrictions on when participants can take distributions from the 401(k) Plan?

+ Are participant loans permitted under a 401(k) Plan?

+ Are Roth contributions permitted under a 401(k) Plan?

+ Is there any government reporting that is required by an employer sponsoring a 401(k) Plan?

+ How is a 401(k) Plan different from a SIMPLE IRA Plan?

+ How is a 401(k) Plan different from a Profit-Sharing Plan?

+ How is a 401(k) Plan different from a SEP Plan?