Save time with our cheat sheets, fact sheets, checklists & books!

February 16, 2009

Plan agreement ( plan agreement)



The document that explains the terms and conditions under which the plan must operate.

For IRAs, the plan agreement is the IRA adoption agreement. An individual who completes and signs the adoption agreement , enters into a contract with the IRA custodian/trustee- the terms of which are explained in the IRA agreement& disclosure statement

For qualified plans, the plan document and agreement are usually based on the IRS Listing of Required Modifications (LRMs),  which is a collection of information packages designed to assist sponsors who are drafting or re-drafting plans to conform with applicable law and regulations

Referring Cite

Plan agreement, IRS Listing of Required Modifications (LRMs)

Additional Helpful Information

  • Financial institutions may use their own prototype IRA agreements, or use the IRS Model documents
  • Important information is included in the plan document and agreements, such as  when distributions can be taken , the tax effect of taking distributions, rollover rules, and beneficiary options ( provisions) . For qualified plans, a simplified explanation of these rules are required to be provided in a summary plan description (SPD)



Keep Learning

Qualified Charitable Distribution (QCD)

Definition A distribution that is excludable from the distributee’s income, as a result of meeting the following requirements: It is made after the distributee reaches

Saver’s Credit

Definition Also known as the Saver’s Tax Credit: Nonrefundable tax credit available to eligible individuals who make contributions to their retirement account. The saver’s credit

Catch-up Contribution

Definition An additional contribution that can be made to a retirement plan by a participant who is at least age-50 by the end of the

Be among the first to know when

IRA Rules