OK, so you want to adopt a 401(k), profit sharing, or money purchase plan!  A few important items first.

  • We are assuming that you have already received some consulting advice on the issues and employer responsibilities involved in adopting a 401(k), profit sharing, or money purchase plan and that you have some idea of the magnitude of the potential employer contribution requirements.  If you are unsure, read about Qualified Plans and review the information on Defined Contribution Plans.

  • You will be asked to complete ALL of the items below and submit the information to us.  We will review it and contact you to confirm receipt and our understanding of your desired plan provisions.

  • After we contact you, we will need a non-refundable deposit of $995 to complete the plan document, summary plan description, and all election forms.  You may either use a credit or debit card and click on the Payments button above, or you may send us a check.

Mailing address for payment by check is:

ALI Actuarial & Retirement Plan Services    POB 860       Fletcher, NC  28732

  • YOU ARE UNDER NO OBLIGATION TO PAY ANYTHING UNTIL WE CONTACT YOU AND CONFIRM YOUR DESIRE TO START THE PLAN.  We will send the completed plan document and supporting forms once we receive the $995 deposit.

  • You will be given a copy of a qualified defined contribution plan.  You must sign and date the last page and return it to us by mail or fax, and mail us a check, or use a credit or debit card, for the remaining $1,000 plan adoption fee.

  • You will also be given an IRS employer identification number for the trust.  You must use this to open the investment for the plan.

  • You will also be given beneficiary election forms which must be filled out and either mailed or faxed back to us at your convenience.

  • If you are electing 401(k) provisions, you will also be given salary deferral election forms which must be filled out by all participants electing to contribute to the plan.   The forms must be mailed or faxed back to us promptly.

  • On a periodic basis (timing to be determined) you will need to provide us with data, in a form to be agreed upon, on all eligible employees of the employer, including names, dates of birth, dates of hire, compensation, hours worked, and elective deferrals.

  • Our fees for the annual recordkeeping services for the plan are described under Prices.  Annual fees depend upon the number of employees of the employer.   Minimum annual price for most plans is $1,200.

  • A defined contribution plan, especially one with 401(k) provisions, is a serious undertaking on the part of the employer.  You are committing to the establishment of a plan that has important financial, communication, reporting, and compliance requirements each year.  The most important requirement is that the plan must meet certain discrimination tests each year to maintain its qualified status.  Also, employer contributions may be required (not discretionary) depending on the plan provisions you have chosen.  YOU MAY AMEND THE PLAN AT ANY TIME IN THE FUTURE TO ALTER SOME OR ALL OF THESE CONDITIONS.

  • By proceeding, you agree that you are acquainted with the requirements of an adopting employer in maintaining a qualified defined contribution plan.

If you do not agree with these items, or if you have any questions before you continue, read about Qualified Plans and, if need be, contact us here at ALI Actuarial & Retirement Plan Services.

Employer Name:   


City, State, Zip:    

Telephone:                   Fax:      

Email Address:      

Federal EIN:        Tax Year-End:    State of Domicile: 

Type of Entity: (corp., partnership, sole prop., etc.)   

Desired Effective Date of Plan:    (Must be signed by last day of plan year.)

Name of Person to Contact:   

Money Purchase Contributions Elected (If elected, these contributions are mandatory; maximum of ALL employer contributions is 25% of pay.)

Profit Sharing Contributions Elected (If elected, these contributions are discretionary; maximum of ALL employer contributions is 25% of pay.)

401(k) Deferrals Elected (If elected, must use salary deferral election forms provided by ALI Actuarial & Retirement Plan Services.)

Matching Contributions Elected (If elected, be prepared to discuss matching amount when we contact you.)

Important:  When we contact you, please be prepared to discuss eligibility periods, minimum age, employee exclusions, vesting, forfeitures, retirement age, loan provisions, and hardship withdrawal provisions.  (We can explain the implications of each item when we call, if you are unfamiliar with them.)  If 401(k) is elected, consider frequency of salary deferral elections.  If money purchase or profit sharing is elected, consider how contributions will be allocated and whether plan will be integrated with Social Security.

Choice and selection of investment funds will also affect how the plan is administered.   When you use ALI Actuarial & Retirement Plan Services for recordkeeping, you are not tied to any specific investment funds or family of funds, and you may seek out any investment options you want.