Next steps
Getting started
A proposal takes a few minutes of your time and some basic census data. Here is what to send, and what happens after.
What to send for a proposal
| Item | Details |
|---|---|
| Business | Entity type, tax year end, other businesses under common ownership, any current retirement plans |
| Each owner | Date of birth, date of hire, ownership %, pay for the last 3 years |
| Each employee | Date of birth, date of hire, pay, hours worked, and any family relationship to an owner |
| Goals | Rough contribution budget, and how long you expect to keep the plan |
From proposal to first contribution
- Proposal. We show the owner contributions and staff costs (if applicable) by plan and type, all in a detailed illustration.
- Plan design and documents. The actuary selects the appropriate design to meet the objectives and the plan document is prepared. Sign the plan document and adoption resolution.
- Trust account. Open an investment account in the name of the plan's trust, with its own EIN.
- First valuation. After year end, the actuary certifies the contribution range.
- Deposit. Contribute within the range by the tax filing deadline to take the deduction.
The yearly cycle
Timing shown is for a calendar-year plan, in the year after the plan year ends.
| Step | Timing |
|---|---|
| Year-end census and asset statements | January – February |
| Actuarial valuation and contribution range | January – July |
| Contribution deposit | March – September 15 |
| Schedule SB and Form 5500-SF (or 5500-EZ for owner-only plans) | By July 31, or October 15 if on extension |
| Annual funding notice to participants, and PBGC premium filing if covered | By October 15 |