Employee benefit questions you didn’t want to ask (but should): What is a plan document?

Managing the complexities of employee benefit plans can raise questions you might hesitate to ask—whether they feel too basic or you’re unsure where to begin. In this series, “Employee benefit questions you didn’t want to ask (but should),” we tackle some of the most common questions about employee benefits to help you navigate the details with confidence. Whether it’s understanding plan documents, clarifying key terms or addressing compliance issues, we’re here to provide the answers you need.

Q: What is a plan document? And do I need it?

A: A plan document is the official, legally binding document that contains all of a retirement plan’s rules. And, YES, you do need it and not just because the IRS and DOL say you do.  

A clear and well-structured plan document can act as a guide for plan operations. When is the new employee eligible to participate in the plan? Do we “match” employee contributions? When can employees take money from the plan? The plan document answers all of these questions and more. 

Even if your service provider handles most of the day-to-day operations of your plan, you should still have a copy of your plan document for your records. It may be a single document, or a combination of documents, such as an “adoption agreement,” plus a “basic plan document.” If you can’t find a copy of your plan document, ask your service provider for a copy and store it somewhere safe.