When you establish a 401(k) plan, you must take certain basic actions. One of your first decisions will be whether to set up the plan yourself or to consult a professional or financial institution such as a bank, mutual fund provider, or insurance company to help with establishing and maintaining the plan. In addition, there are four initial steps for setting up a 401(k) plan:
- Adopt a written plan document,
- Arrange a trust for the plans assets,
- Develop a recordkeeping system, and
- Provide plan information to employees eligible to participate.