Wrap Document with 401(k)

[R. Butler]

A client attended a seminar where at least the client was given the impression that it is beneficial to wrap H&W benefits with the 401(k) plan into one document.

2 questions:

1. Are there document providers that provide a wrap document whereby the 401(k) provisions & the H&W provisions are incorparated into one document?

2. Even assuming that the answer to Question 1 is yes, what would be the benefit of wrapping a 401(k) plan wiht H&W plans? I understand why a plan sponsor might want to wrap all H&W benefits into a single plan, but I don't see why a plan sponsor would want to wrap a retirement plan with welfare plan.

Thank you for any guidance.

[QDROphile]

It is not a good idea. It adds confusion to complexity.

[GBurns]

I think that it depends on the level at which it is being wrapped. I keep getting different definitions of "documents" etc. The following is a simplistic explanation of what I mean.

There is at the top level the "Employee Benefits Program" which states what it is that the company is offering. This would include retirement, plans, vacation plans, H&W plans etc.

The second level is the description of "How" these items will be made available such as whether through a CBA, A VEBA, self insured or fully insured etc.

The third level describes the "What" of each item.

Each of these levels has "documents" and each item could have its own separate describing or explanatory "document" or could be a section within an all encompassing "document" which "wraps" them all.