Eric Taylor Posted January 12, 2018 Posted January 12, 2018 This is hopefully a simple question but I'm not having luck with quick assistance from Fidelity. Question is what all needs to be done to add a Participating Employer to a 401(k) Plan on a Fidelity Volume Submitter (Adoption Agreement No. 1 to the extent that may matter)? I know we will need to amend Section 1.02(b) of the Adoption Agreement to provide for a Participating Employer (they haven't had one before) and also complete the Participating Employer Addendum to list the company (which is a recently acquired member of the controlled group). The general form of the Participating Employer Addendum provided, however, does not appear to include a place for the Participating Employer to sign. We plan to have a Board Resolution by Participating Employer authorizing participation in the plan but do they need to sign the adoption agreement or addendum anywhere? Also, it appears that Participating Employers are generally treated as Employers with respect to credit for vesting purposes? Is there any need to expressly provide for prior service credit for the Participating Employer or is that assumed by virtue of their participation? (I assume the later but wanted to confirm.) Thanks
austin3515 Posted January 15, 2018 Posted January 15, 2018 Ummm... You need to involve Fidelity. They handle everything. And I hope you give them 3 months of lead time! If you do it without them, you will end up regretting it I think. Work within the system, it's the only way that platform works. I learned that the hard way. The words "flexible" and "accommodating" do NOT rush into mind when thinking of how to describe them. Austin Powers, CPA, QPA, ERPA
ESOP Guy Posted January 15, 2018 Posted January 15, 2018 24 minutes ago, austin3515 said: I learned that the hard way. The words "flexible" and "accommodating" do NOT rush into mind when thinking of how to describe them. That might be an understatement! I was amazed how long it took us to get a person ASSIGNED to use to START the process to upload ESOP data so it could be added to the 401(k) statement. (Months to get a contact person to start the process!) I won't even bother with a discussion of how long it took to actually get a simple data transfer set up! I wish I could give my clients that bad of service and keep my job! Life would be easy!
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