Basic 401(k) Plans


This course provides an overview of 401(k) plans, including the parties involved, the contribution types and annual limits that apply to contributions, investment vehicles available to 401(k) plans, and eligibility and vesting requirements. It discusses the required forms, when distributions are permitted or required, and the tax consequences. It examines the participant loan rules, plan document requirements, summary plan descriptions, form 5500, and summary annual report. The course concludes with a discussion on the financial professional’s role during a plan conversion.

Learning Objectives

Students who successfully complete this course will be able to:

  • explain the history of 401(k) plans
  • identify the basic characteristics of 401(k) plans
  • list the types of entities that can establish 401(k) plans
  • explain the reasons why a company may want to maintain a 401(k) plan
  • explain the reasons why an employee may want to participate in a 401(k) plan
  • list the different parties involved in maintaining a 401(k) plan (plan administrator, plan sponsor, and trustee)
  • identify the types of investments available to 401(k) plans

Designed For

Retail, Investment Advisor

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