Plan/Participant Investment Account(s)

Guidant Financial Group, Inc. and your designated outside counsel have discussed with you the requirement of setting up investment/brokerage accounts for each participant of your Corporation’s 401(k) Plan. Now that you have chosen an investment provider, you will need to complete the appropriate account application(s) to open the required account(s). We have provided information regarding questions and information generally requested of you when establishing the account(s).

The Investment Provider has requested a copy of the 401(k) Plan, where do I find this?

You can find a copy of your 401(k) Basic Plan Document on your USB in the 401(k) Plan Documents folder. The file is named 5) 401(k) Basic Plan.

The Investment Provider has requested a copy of the IRS Determination Letter acknowledging that the plan is qualified under Internal Revenue Code Section 401, where do I find this?

You can find a letter from the Department of Treasury/ IRS regarding your Plan on your USB in the 401(k) Plan Documents folder. The file is named 6) IRS Determination Letter.

The Investment Provider has requested documentation confirming who the Trustee and Sponsor of the Plan are, where do I find this?

The Trustee and Sponsor are listed on the last two pages of your 401(k) Adoption Agreement. You can find a draft of your Adoption Agreement on your USB in the 401(k) Plan documents folder. The file is named 1b) Adoption Agreement. You received your signed and countersigned copy via DocuSign earlier in the process.

Who is my Recordkeeper?

While completing your Guidant 401(k) you were asked to elect a Recordkeeper, most likely you chose Guidant Financial Group, Inc. No matter who you have elected as your Plan Recordkeeper, that is who your 3rd Party Pension Plan Recordkeeper is. It is important to understand that Guidant does not intend to acquire any control over your brokerage account or your participants’ brokerage accounts via a power of attorney, limited or otherwise.

Is Guidant a “Party of Interest?”

You may elect to have Guidant as a party of interest, but it is not required.

Why should I elect Guidant as a “Party of Interest?”

It is a good idea to list Guidant as a party of interest so copies of the master and participant account statements are sent directly to us. This information is requested by Guidant from you at the end of the plan year. By including Guidant as a party of interest for mailings, you will not have to compile, store and mail these statements to us at the end of the year.

How do I make Deferral Contributions?

On or around payday you will send one lump sum check from your Corporation bank account to the master account. This check should include all contributions and matching monies for all plan participants during that pay period.

How does my investment firm know where to put all the money?

With the check you send, you will want to complete and submit a breakdown of all the monies. We have included a sample letter for you to use. If you do not submit such a letter, the investment firm has no way of knowing which plan participant account should get what.

Who is responsible for all investment decisions?

You, the Plan Trustee/Custodian, not Guidant, are responsible for all investment decisions made. This includes, but is not limited to, determining the appropriateness, potential and quality of the investment strategy you choose. Remember, the 401(k) Plan and IRS rules require the Trustee of a retirement plan to be a prudent investor and invest responsibly.

Can I limit the funds available to my participants?

Yes, you can. However, you are going to want to provide a wide range of funds to your participants. If your limit of funds is too narrow, the IRS might view this as not fully allowing the participant’s accounts to be self-directed. There is not liability on your part if you allow unlimited funds. For further information, review the Funding Policy Statement that is located on your USB in the 401(k) Plan Documents folder. The file is named 3c) Funding Policy Statement.

I have completed all forms, now what?

Once you have completed all required forms, send them directly to your brokerage firm. Do not send them to Guidant.

Does Guidant need copies of the new account application(s)?

No. Guidant does not need to have copies of your new account application(s).

Does Guidant need copies of the account statements I will receive or have received?

Only if you have elected to have Guidant as the Recordkeeper for your 401(k) Plan. At the end of your plan year, your Recordkeeper will need all of the account statements for your 401(k) accounts. To make the task of keeping these statements all year, you can have your Recordkeeper copied on all statements. Be sure to take to the investment provider to see what you will need to do to accomplish this.

Terms to be familiar with (refer to your 401(k) Basic Plan Document, for additional terms):

  • Plan Trustee/Custodian/Administrator: You personally, and any other person(s) you may have named as Co-Trustee(s) (usually a spouse), are the Trustee(s) of your Corporation’s 401(k) Plan. You may have elected to have someone other than yourself to carry out the administrative duties for your plan. For fast reference, the Trustee(s) that you named on your Guidant 401(k) Questionnaire can also be found on your Adoption Agreement located on your USB in the 401(k) Plan Documents folder.
  • Plan Sponsor: The Corporation we have formed for you is the plan sponsor. The Corporation owns the 401(k) plan and it is offered to employees of the Corporation.
  • Prototype Plan Sponsor: Guidant Financial Group, Inc. is the prototype sponsor of your Plan Document. We have made the plan documents available to the Plan Sponsor (the Corporation) for the sponsor’s use.
  • Plan Participant: All employees or former employees of the Corporation who have met the requirements set forth in your Adoption Agreement, has entered the plan and who it or may become eligible to receive benefit of any type from this Plan or whose Beneficiary may be eligible to receive any such benefit.
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