Adoption Date vs. Effective Date

[Guest LKHartnett]

Boy do I feel dumb asking this question . . .

What is the difference between a plan's adoption date and its effective date?

[E as in ERISA]

The adoption date is the date executed; the effective date is the date that benefits under the plan start.

The adoption date might be before or after the effective date. A company could adopt a profit sharing plan on 9/10/02 that is effective 1/1/03, or that is retroactively effective to 1/1/02. (But 401(k) deferrals can't start until after the adoption date -- because the elections can't be retroactive)

[Guest LKHartnett]

Thanks!