Go Custom
Customize
your 401(k) plan design by adding or removing features from the pre-made
Go401k designs. The following is a list of some of the provisions you can
modify to create a customized 401(k) plan for your company. There may be
benefits in creating a new comparability 401(k), or target benefit 401(k)
for your company. That will become evident after a Go401k Analysis is
performed. Call 888-446-401k for details.
401(k) plans are highly customizable and the following is meant to illustrate the flexibility of a 401(k) plan. The best way to create a custom 401(k) plan is to meet with a Go401k advisor who can answer all of your questions and help design a plan that meets your needs.
Additional Options:
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Profit Sharing Plan
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Roth 401(k)
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Automatic Enrollment
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Self Directed Brokerage Account
Modifications:
Eligibility:
Eligibility requirements of a 401(k) plan are written into the plan document. The default eligibility requirements for Go401k Group pre-made plans are 1 year of employment with at least 1000 hours of service and attainment of age 21. You can customize your plan by changing the length of service and/or attained age.
6 months of employment with at least 500 hours of service is a common provision. Attainment of age 18 instead of age 21 is common as well.
Entry Dates:
The dates that a participant may enter the plan are written into the plan document. Entry dates vary from plan to plan and can be almost anytime after fulfilling the eligibility requirements.
Common Entry Dates:
Semi-Annual - 1/1 and 7/1
Quarterly - 1/1, 4/1, 7/1, 10/1
Monthly on the first day of the month following fulfillment of the eligibility requirements.
Matching Contributions:
Safe Harbor 401(k) plans and SIMPLE 401(k) plans have required matching contributions. Traditional, Roth, and Individual 401(k) plans do not.
The default Safe Harbor matching contribution for Go401k pre-made plan designs is a 3% non-elective contribution to all eligible employees. This can be modified to be a 100% match up to the first 3% of salary and a 50% match up to an additional 2% of salary. There are no other matching formulas for a Safe Harbor 401(k) plan.
The default SIMPLE 401(k) matching contribution for Go401k pre-made plan designs is a 2% non-elective contribution to all eligible employees. This can be modified to be a 100% match up to the first 3% of salary.
Other 401(k) plans do not have to follow the same requirements as the SIMPLE or the Safe Harbor plans. The match is discretionary with a traditional 401(k).
Vesting:
Any and all contributions are immediately 100% vested in a Safe Harbor 401(k) plan and a SIMPLE 401(k) plan. This can not be modified.
You can modify a traditional 401(k) vesting schedule. There are two types of vesting schedules. Either graded, or cliff. The maximum graded vesting schedule is six years. The maximum cliff vesting schedule is three years.
Six Year Graded Vesting Schedule:
0% vested after year one, 20% vested after year two, 40% vested after year three, etc.
A five year graded vesting schedule is common as well.
Three Year Cliff Vesting Schedule:
0% vested until the third year is completed. Then 100% vested.
One and two year cliff vesting schedules are also common.
Loans/Hardships:
Loans and Hardship withdrawals are permitted but not required. An employer can choose to either allow or disallow loans.
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