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February 16, 2009

Plan agreement ( plan agreement)

Your Guide



The document that explains the terms and conditions under which the plan must operate.

For IRAs, the plan agreement is the IRA adoption agreement. An individual who completes and signs the adoption agreement , enters into a contract with the IRA custodian/trustee- the terms of which are explained in the IRA agreement& disclosure statement

For qualified plans, the plan document and agreement are usually based on the IRS Listing of Required Modifications (LRMs),  which is a collection of information packages designed to assist sponsors who are drafting or re-drafting plans to conform with applicable law and regulations

Referring Cite

Plan agreement, IRS Listing of Required Modifications (LRMs)

Additional Helpful Information

  • Financial institutions may use their own prototype IRA agreements, or use the IRS Model documents
  • Important information is included in the plan document and agreements, such as  when distributions can be taken , the tax effect of taking distributions, rollover rules, and beneficiary options ( provisions) . For qualified plans, a simplified explanation of these rules are required to be provided in a summary plan description (SPD)


Written By

Denise Appleby

Denise is CEO of Appleby Retirement Consulting Inc., a firm that provides IRA resources for financial/ tax/legal professionals. She has over 20 years of experience in the retirement plans field, which includes training and technical consultation.

Denise writes and publishes educational /marketing tools for advisors; available at Denise co-authored several books on IRAs

Denise is a graduate of The John Marshall Law School, where she obtained a Masters of Jurisprudence in Employee Benefits, and has earned 5 professional retirement designations.
She has appeared on numerous media programs, sharing her insights on retirement tax laws.


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