What is a prototype plan?
The IRS designed a program to allow employers to adopt qualified plans without incurring the cost of an individually designed plan. This program is made available by sponsoring organizations such as broker/dealer firms, regulated investment companies, banks or insurance companies, and involves “fill-in-the-blanks-form” plans that are pre-approved by the IRS. The procedures for adopting these plans to assure plan qualification is either automatic or simplified.
