Adoption Agreement #009
D246284a
Standardized Simplified Profit Sharing Plan
Paired Profit Sharing Plan
Basic Profit Sharing Plan Considerations
For: Corporate or self-employed employers who want the
flexibility of optional contributions.
Maximum Annual Contribution: 15% of compensation up to $30,000.
Eligibility: All employees age 21 or older who have worked for
the employer for 2 years.
Contribution: Optional.
Establishment Deadline: December 31, or the end of the employer's
fiscal year.
Contribution Deadline: April 15, or date for filing tax return.
Benefits: Contribution is tax-deductible; earnings are tax-
deferred.
Financial Programs
Investment Professionals Since 1932
Provided by:
Financial Programs, Inc.
And the Financial Group
of No-Load Mutual Funds
Custodian:
INVESCO Trust Company
A Subsidiary of INVESCO MIM PLC
[Your Adoption Agreement and Plan document constitute the rules and parameters
under which your retirement program will operate.] These instructions are
intended to assist you, the employer, in choosing the option provisions for your
retirement plan. They are not intended to substitute or replace competent legal
advice from your attorney or accountant. If further clarification is necessary,
contact your counsel or INVESCO Trust Company.
The Standardized Simplified Profit Sharing Plan is designed to make
administration of your retirement plan as simple as possible. If you feel your
situation requires a more complex retirement plan offering additional options,
please call our toll-free number, 800/525-8085, and ask for "Retirement
Services."
Employer's Name -------------------------------------------------------------
Employer ID# ----------------------------------------------------------------
Address ---------------------------------------------------------------------
City, State -------------------------------- Zip -----------------
Telephone Number (----------)------------------------------
One Person Plan: ---- Yes ---- No
Date of Birth ---------------------------------------------
Contribution Frequency ------------------------------------
Instructions for Standardized Simplified Profit Sharing Plan
This Adoption Agreement is an important part of your retirement plan. Please
carefully read the instructions for each option. You may need to refer to the
Plan Document for definitions in the text.
Completes the first blank by putting in the business' name, or, if
self-employed, the owner's name.
1.03 Enter the plan name. Examples, ABC Profit Sharing Plan or ▇▇▇▇ ▇▇▇▇▇ Profit
Sharing Plan.
1.17 Enter the last day of your tax year (usually December 31).
1.18 New Plan - Enter the first day of your tax year, (usually January 1) and
the year.
Restated Plan - effective date - If you are amending for the Tax Reform
Act of 1986, enter: January 1, 1987. If you are amending for another
reason, enter the first day of your tax year, example: January 1, 1990.
Original established date - Enter the original effective date of your plan
from your prior adoption agreement.
2.01 Eligibility
Restated Plan - Complete the eligibility requirements you originally
choose on your prior Adoption Agreement.
New Plan - Choose an age and/or service requirement applicable to the
owner and all employees.
6.01 Distribution Date
Select a "target date" for payouts from the plan due to separation from service,
death, disability or attainment of age 59 1/2. Usually this date is after the
plan has been valued (e.g.: March 1).
10.0 Provide your Federal tax identification number. Date and sign the Adoption
Agreement. Type the name(s) of trustees, (usually the owner and/or managers) and
sign the document as trustee.
Plan Number
If this is the first retirement plan for your business, enter 001; if the
second, enter 002.
Return your completed Adoption Agreement to INVESCO Trust Company for review and
processing. It will be examined for completeness. We will then sign as
custodian, and return the original document.
INVESCO TRUST COMPANY USE ONLY: Account Number ---------------------
Adoption Agreement #009
Standardized Simplified Profit Sharing Plan
(Paired Profit Sharing Plan)
The undersigned,
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("Employer"), by executing this Adoption Agreement, elects to become a
participating Employer in the INVESCO Trust Company Defined Contribution Master
Plan (basic plan document #01) by adopting the accompanying Plan and Trust in
full as if the Employer were a signatory to that Agreement. The Employer makes
the following elections granted under the provisions of the Plan.
1.02 TRUSTEE. The Trustee executing this Adoption Agreement is:
(Choose (a) or (b))
(a) A discretionary Trustee.
(b) A nondiscretionary Trustee. See Section 10.03.
1.03 PLAN. The name of the Plan as adopted by the Employer is
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1.07 EMPLOYEE. The term "Employee" specifically includes all employees of the
Employer.
1.12 COMPENSATION. "Compensation" includes elective contributions and does not
exclude any items other than as specified in Section 1.12 of the Plan.
1.17 PLAN YEAR. Plan Year means the 12 consecutive month period
ending every---------------------------------------------------------.
The Limitation Year is the Plan Year.
1.18 EFFECTIVE DATE. New Plan. The "Effective Date" of the Plan
is ---------------------. Restated Plan. The restated Effective
Date is ---------------------------------------. This Plan is a
substitution and amendment of an existing retirement plan(s)
originally established ---------------------------------------.
1.27 HOUR OF SERVICE. The crediting method for Hours of Service is the monthly
equivalency method.
1.31 LEASED EMPLOYEES. The Advisory Committee will determine the Leased
Employee's allocation of Employer contributions under Article III without taking
into account the Leased Employee's allocation, if any, under the leasing
organization's plan.
2.01 ELIGIBILITY. To become a Participant in the Plan, an Employee must satisfy
the following eligibility conditions:
(Choose (a) or (b))
(a) Age ------ (not exceeding 21).
(b) ------ (0, 1 or 2) Year(s) of Service without, in the case of 2 Years,
an intervening break in Service.
Plan Entry Date/Time of Participation. "Plan Entry Date" means the effective
date and the first day of the Plan Year. An Employee will become a Participant
on the Plan Entry Date (if employed on that date) nearest the date the Employee
completes the above eligibility conditions.
Dual Eligibility. The above eligibility conditions apply to:
(Choose (c) or (d))
(c) all Employees of the Employer without exception.
(d) Employees who are not Participants in the Plan as of the Effective Date.
2.02 YEAR OF SERVICE - PARTICIPATION. An Employee must complete 1,000 Hours of
Service during an eligibility computation period to receive credit for a Year of
Service. After the initial eligibility computation period described in Section
2.02 of the Plan, the Plan measures the eligibility computation period as the 12
consecutive month period beginning with each anniversary of an Employee's
Employment Commencement Date.
2.03 BREAK IN SERVICE - PARTICIPATION. The Break in Service rule described in
Section 2.03(B) of the Plan applies to the Employer's Plan.
3.01 AMOUNT. The amount of the Employer's annual contribution to the Trust will
equal the amount the Employer may from time to time deem advisable, irrespective
of whether the Employer has Net Profits. If the Employer is a member of a
related group (as defined in Section 1.30), it may not execute this Adoption
Agreement.
3.04 CONTRIBUTION ALLOCATION. The Advisory Committee will allocate the annual
Employer contributions (and Participant forfeitures) in the same ratio that each
Participant's Compensation for the Plan Year bears to the total Compensation of
all Participants for the Plan Year.
Top Heavy Minimum Allocation. The plan will satisfy the top heavy minimum
allocation requirement of Section 3.04(B) as follows: (1) if the Employer does
not maintain a Paired Pension Plan, the Employer will make any necessary
additional contribution to the Participant's Account, as described in Section
3.04(B)(7)(a) of the Plan; and (2) if the Employer maintains a Paired Pension
Plan, that Paired Pension Plan will guarantee the top heavy minimum allocation
and this Plan does not guarantee that minimum.
3.05 FORFEITURE ALLOCATION. Subject to any restoration allocation required under
Section 9.14, the Advisory Committee will allocate a Participant forfeiture, as
an Employer contribution for the Plan Year in which the forfeiture occurs, as if
the Participant forfeiture were an additional Employer contribution for that
Plan Year.
3.06 ACCRUAL OF BENEFIT. For any Plan Year, the Advisory Committee will
determine the allocation under Section 3.04 by taking into account a
Participant's Compensation for the entire Plan Year. To receive an allocation of
Employer contributions (and Participant forfeitures), the Participant: (a) if he
is employed by the Employer on the last day after the Plan Year, must complete
at least one Hour of Service for that Plan Year, and (b) if he is not employed
by the Employer on the last day of the Plan Year, the Participant must complete
at least 501 Hours of Service during the Plan year, except there is no Hour of
Service requirement if the Participant terminates employment during the Plan
year on account of death, disability or attainment of Normal Retirement Age.
3.15 MORE THAN ONE PLAN LIMITATION. If the provisions of Section 3.15 apply, the
Excess Amount attributed to this Plan equals the produce of: (i) the total
Excess Amount allocated as of such date (including any amount which the Advisory
Committee would have allocated but for the limitations of Code Section 415);
times (ii) the ratio of (1) the amount allocated to the Participant as of such
date under this Plan, divided by (2) the total amount allocated as of such date
under all qualified defined contribution plans (determined without regard to the
limitations of Code Section 415).
3.18 DEFINED BENEFIT PLAN LIMITATION. The limitation under Section 3.18 of the
Plan does not apply to the Employer's Plan if the Employer does not maintain and
never has maintained a defined benefit plan covering any Participant in this
Plan. If the limitation under Section 3.18 does apply, the Employer will reduce
the Participant's projected annual benefit under the defined benefit plan under
which the Participant participates and will apply the 100% limitation described
in Section 3.19(1), unless the Employer provides an alternative compliance
method in an addendum to this Section 3.18.
5.01 NORMAL RETIREMENT. Normal Retirement Age under the Plan is age 59 1/2.
5.02 PARTICIPANT DEATH OR DISABILITY. The 100% vesting rule of Section 5.02
applies to death and to disability.
5.03 VESTING SCHEDULE. Subject to Section 9.14 of the Plan, a Participant's
Accrued Benefit is 100% Nonforfeitable at all times. The deemed cash-out rule
does not apply.
5.06 YEARS OF SERVICE - VESTING. An Employee receives credit for a Year of
Service for vesting purposes if he completes at least 1,000 Hours of Service
during a Plan Year.
5.08 INCLUDED YEARS OF SERVICE - VESTING. The Employer specifically includes
all Years of Service.
[Note: If Section 6.01 or Section 6.03 liberalizes the optional forms of benefit
under the Plan, the more liberal options apply on the later of the adoption date
or the Effective Date of this Adoption Agreement.]
6.01 TIME OF PAYMENT OF ACCRUED BENEFIT. A distribution date under the Plan
means
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If a Participant's Nonforfeitable Accrued Benefit does not exceed $3,500, or if
the Participant separates from Service because of disability, the distribution
date, subject to the limitations of Section 6.01(A), is the first distribution
date following the Participant's Separation from Service. The Plan does not
permit a hardship distribution. If a Participant or Beneficiary defaults on a
loan made pursuant to a loan policy adopted by the Advisory Committee pursuant
to Section 9.04, the Plan treats the default as a distributable event. The
Trustee, at the time of the default, will reduce the Participant's
Nonforfeitable Accrued Benefit by the lesser of the amount in default (plus
accrued interest) of the Plan's security interest in that Nonforfeitable Accrued
Benefits.
6.03 BENEFIT PAYMENT ELECTIONS. A Participant who is eligible to make
distribution elections under Section 6.03 of the Plan may elect to commence
distribution of his Nonforfeitable Accrued Benefit as of any distribution date
following his Separation from Service. Furthermore, subject to the restrictions
of Article VI, until he retires, the Participant has a continuing election to
receive all or any portion of his Nonforfeitable Accrued Benefit after he
attains Normal Retirement Age.
6.04 ANNUITY DISTRIBUTIONS TO PARTICIPANTS AND SURVIVING SPOUSES. The annuity
distribution requirements of Section 6.04 apply only to a Participant described
in Section 6.04(E) of the Plan (relating to the profit sharing plan exception).
9.10 VALUE OF PARTICIPANT'S ACCRUED BENEFIT. If a distribution (other than a
distribution from a segregated Account) occurs more than 90 days after the most
recent valuation date, the distribution will include interest at 0% per annum.
10.0 The Trustee (and Custodian, if applicable), by executing this Adoption
Agreement, accepts its position and agrees to all of the obligations,
responsibilities and duties imposed upon the Trustee (or Custodian) under the
Master Plan and Trust. The Employer hereby agrees to the provisions of this Plan
and Trust, and in witness of its agreement, the Employer by its duly authorized
officers has executed this Adoption Agreement, and the Trustee (and Custodian,
if applicable) signified its acceptance, on this ----- day of---------------,
19-----.
Name and EIN of Employer: ---------------------------------------------------
Signed: ---------------------------------------------------------------------
Name(s) of Trustee: ---------------------------------------------------------
Signed: ---------------------------------------------------------------------
Signed: ---------------------------------------------------------------------
Name of Custodian: INVESCO Trust Company
Signed:----------------------------------------------------------------------
[Note: A Trustee is mandatory, but a Custodian is optional. See Section 10.03
of the Plan.]
Plan Number. The plan's 3-digit number assigned for ERISA reporting purposes
(Form 5500 Series) is: ------------------------------.
Use of Adoption Agreement. Failure to complete properly the elections in this
Adoption Agreement may result in disqualification of the Employer's Plan. The
3-digit number assigned to this Adoption Agreement (see page 1) is solely for
the Master Plan Sponsor's recordkeeping purposes and does not necessarily
correspond to the plan number the Employer designated in the prior paragraph.
The Master Plan Sponsor offers the following Paired Pension Plan(s) with this
Paired Profit Sharing Plan, identified by 3-digit adoption agreement number: 004
and 010.
Master Plan Sponsor. The Master Plan Sponsor identified on the first page of the
basic plan document will notify all adopting employers of any amendment of this
Master Plan or of any abandonment or discontinuance by the Master Plan Sponsor
of its maintenance of this Master Plan. For inquiries regarding the adoption of
the Master Plan, the Master Plan Sponsor's intended meaning of any plan
provisions or the effect of the opinion letter issued to the Master Plan
Sponsor, please contact the Master Plan Sponsor at the following address and
telephone number: INVESCO Trust Company, ▇▇▇▇ ▇▇▇▇ ▇▇▇▇▇ ▇▇▇., ▇▇▇▇▇ ▇▇▇,
▇▇▇▇▇▇, ▇▇▇▇▇▇▇▇ ▇▇▇▇▇, (▇▇▇) ▇▇▇-▇▇▇▇.
Reliance on Opinion Letter. If the Employer does not maintain (and has never
maintained) any other plan other than this Plan and a Paired Pension Plan, it
may rely on the Master Plan Sponsor's opinion letter covering this Plan for
purposes of plan qualification. For this purpose, the Employer has not
maintained another plan if this Plan, or the Paired Pension Plan , amended and
restated that prior plan and the prior plan was the same type of plan as the
restated plan. If the Employer maintains or has maintained another plan
other than a Paired Pension Plan, including a welfare benefit fund, as defined
in Code Section 419(e), which provides post-retirement medical benefits for key
employees (as defined in Code Section 419A(d)(3)), or an individual medical
account (as defined in Code Section 415(1)(2)), the Employer may not rely on
this Plan's qualified status unless it obtains a determination letter from the
applicable IRS Key District office.
adop-agr\sspsp.009
