Can I offer a 401(k) plan to my employees in Michigan? What are the requirements?

Based on the information provided in the context documents, here is what you need to know about offering a 401(k) plan to your employees in Michigan:

Requirements for Offering a 401(k) Plan in Michigan

To offer a 401(k) plan to your employees in Michigan, you will need to comply with the following requirements:

1. Each plan you offer to employees has its own annual IRS contribution limits ^[1].
2. You will be responsible for monitoring each plan’s contribution limits and for keeping the other plans separate from the State of Michigan 401(k) and 457 Plans for reporting and recordkeeping purposes ^[1].
3. The State of Michigan has a contract with Voya Financial to provide record-keeping and custody services for the 401(k) DC Plan ^[5].

Conclusion

In summary, you can offer a 401(k) plan to your employees in Michigan, but you will need to comply with the IRS contribution limits and keep the plan separate from the State of Michigan 401(k) and 457 Plans for reporting and recordkeeping purposes. Additionally, the State of Michigan has a contract with Voya Financial to provide record-keeping and custody services for the 401(k) DC Plan.

Source(s):

• [1] State of Michigan 457 Plan Q and A
• [5] 401(k) Retirement Plan Overview

Jurisdiction

Michigan

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