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

Yes, you can offer a 401(k) plan to your employees in North Carolina. Private employers can establish and maintain a 401(k) plan, subject to certain requirements.

Requirements for Establishing and Maintaining a 401(k) Plan in North Carolina

To establish and maintain a 401(k) plan in North Carolina, private employers must comply with the following requirements:

  • The plan must be established and maintained in accordance with the provisions of the North Carolina Human Resources Act [1.1].
  • The plan must comply with the Internal Revenue Code and the Employee Retirement Income Security Act (ERISA) [2.3].
  • The plan must be offered to all eligible employees on a nondiscriminatory basis [2.3].
  • The plan must have a written plan document that outlines the terms and conditions of the plan [2.3].
  • The plan must have a trustee or custodian to hold the plan assets [2.3].

Private employers should consult with a qualified attorney or financial advisor to ensure that their 401(k) plan meets all legal requirements.

Public Employee Deferred Compensation Plans

In addition to private 401(k) plans, public employees in North Carolina may participate in the North Carolina Supplemental Retirement Income Plan and the North Carolina Public Employee Deferred Compensation Plan [2.1][1.2]. The North Carolina Public Employee Deferred Compensation Plan is administered by the Supplemental Retirement Board of Trustees established under G.S. 135-96 [1.2].

Conclusion

Private employers can offer 401(k) plans to their employees in North Carolina, subject to certain requirements. Public employees in North Carolina may participate in the North Carolina Supplemental Retirement Income Plan and the North Carolina Public Employee Deferred Compensation Plan.

Source(s):
Jurisdiction

North Carolina