You must complete a retirement contribution agreement to increase the contribution amount to your retirement plan by reducing the amount of the employee or an eligible participant’s salary. This agreement must be returned to the person who also works in the organization and who manages the payroll. This agreement is made between the parties who are involved in a monetary contribution that is made to a retirement plan.
6 Ways to Create a Retirement Contribution Agreement
Step 1: Get Some Knowledge
Getting some knowledge regarding what you are going to do is the first thing before you go for retirement. So make sure you consult a law library, legal website or any government agency like the IRS or Internal Revenue Service. You can take the help of the sample agreements and regulations that covers various types of contributions. Follow the sample form for important details likes title, sections that specify the terms and conditions and other contractual terminologies.
Step 2: Determine the Parties Involved
Recognize all the parties that are involved in the agreement including the beneficiaries or those who have any residual interest and might at any time try to affect the terms and conditions of the contribution. Make sure you use full legal names or descriptions and also include any nicknames or any kind of common references to quickly identify participants. Also include complete addresses, clearly identify the owner or the officers who will sign for a small business.
Step 3: Evaluate the Materials Included
You must then evaluate the materials that are included and specify the materials that are being donated, whether it is money, real estate, material objects like artwork or computer code. Explain it fully so any third party will be able to identify the contributions and its relation to the business. Describe the purpose of the contribution, whether it is a gift or a sale of information or assets, etc.
Step 4: Outline the Limitations
Define the limitations that are set for the contributions or any time constraints like a period in which it must be accepted or the agreement will void. Explain all the obligations of all the parties to the contribution in detail including things as requiring approval of tax or any regulatory authorities for acceptance. Make sure you set time-limits for actions.
Step 5: Lay Out the Laws
Layout the laws that are used to form the agreement and that can be used for interpretation in case any challenges show up. You can include any special references like government handbooks, financial institution rules or tax regulations. Provide some specific steps for the clarification of questions short of any court challenges. Give a place for all the affected parties to sign and this can be either direct participants or secondary interest.
Step 6: Take Out the Final Copy
Make a copy of the agreement with any appropriate regulatory agency like the Internal Revenue Service or IRS. Now provide copies to all the affected parties and keep one in a secure place like a company safe or any kind of safe deposit box. Make sure that the company financial officer or accountant has a copy to support the information on a tax return or any other business form.
11+ Retirement Contribution Agreement Templates in DOC | PDF
1. Basic Retirement Contribution Retirement Template
This is a basic retirement contribution template that consists of a notice providing important information relating to the participation of the user in a particular retirement plan. It mentions the validity of the plan stating when it begins. The information in this form should be considered when the client decides how much if any of his/her compensation he/she wishes to contribute to the retirement plan. Download this retirement contribution agreement and you can directly edit the details and use it instantly.
2. Enhanced Match Contribution Template
An enhanced match contribution consists of various important information starting from the eligibility for a special matching contribution where it states when you will be eligible to receive the special contribution. It also mentions that no other contributions will be made as the special matching contribution is the only matching contribution that the employer will make to the plan. To know more such important information, you can download this template in Google Docs format right now!
3. Salary Reduction Agreement Template
If you are looking for a sample salary reduction agreement, then you can stop right here and go through this useful template. It is a salary reduction agreement in Word that lays out the authorization to make the salary reduction contributions, duration of the agreement, and signatures. It also consists of the employee representations and understandings for the reader to understand contribution limitations related to the agreement. Download it today!
4. Retirement Contribution Agreement Template
Your retirement contribution agreement is a written and legally binding agreement between you and your employer. It is an agreement through which you can direct your employer to reduce the compensation by a specific percentage or amount. Your employer will send the amount to the plan or plan specified in the agreement as a tax-sheltered contribution or he can also make contributions to the plan in addition to your contributions. Download this editable retirement contribution agreement template to suit your needs regarding 403(b)(9) Retirement Plan.
5. Salary Contribution Agreement Template
This is a salary contribution agreement template that simply means an agreement between the employer and an eligible employee through which the employee elects to reduce compensation by a specific dollar or percentage. The employer agrees to contribute such amount to the 401(k) plan. You can go through our retirement contribution agreement in Pages if you are more comfortable with this format.