Save time with our cheat sheets, fact sheets, checklists & books!

February 16, 2009

Plan administrator

Print

Definition

The person or party responsible for handling the day-to-day administrative functions of the plan.

Responsibilities  of the plan administrator include

  • maintaining plan records,
  • preparing reports,
  • provide a written explanation to any recipient of an eligible rollover distribution
  • perform any required withholding from distributions and send the withheld amounts to the IRS as income tax withholding to be credited against the payee’s taxes. For instance, if an eligible rollover distribution is not processed as a directed rollover, the plan administrator is generally required to withhold 20% for federal taxes.
  • process distribution requests

Referring Cite

Plan’s adoption agreement

Additional Helpful Information

The plan administrator is usually the employer, unless the employer farms out the administrative responsibilities to another party.

More

Keep Learning

Applicable RMD Age

Applicable RMD Age The first year for which an IRA owner or plan participant must begin to take RMDs from their tax-deferred retirement account. RMDs

SIMPLE 401(k) Plan

Definition A SIMPLE 401(k) plan is a 401(k) plan established by a small business for it’s employees. Earnings accrue on a tax-deferred basis and distributions

Required Minimum Distribution (RMD)

Definition The minimum amount that must be withdrawn from retirement accounts, including qualified plans, 403(b) accounts, 457(b) accounts or IRAs, each year.  For retirement account

Required beginning date (RBD)

Definition The date by which a retirement account owner must begin distributing required minimum distribution (RMD) amounts from a Traditional,  SEP or SIMPLE IRA, a

Be among the first to know when

IRA Rules
Change