Create 401(k) Plan

Here’s how you create the plan.

1. Click Navigator > Benefits Administration > Plan Configuration.
2. Create a plan.
3. In the Basic Details step, provide a meaningful name for your plan, and complete these fields:

   Field	Value
   Plan Type	Select the savings plan type you created in an earlier task.
   Usage	Not in program In this example, you’re creating a standalone plan that’s not associated with a program.
   Plan Function	Savings
   Status	Active
   Communicated Rate Frequency	Per pay period
   Defined Rate Frequency	Monthly
   Rate Level	Legal Entity
   Plan Default Currency	Select the applicable currency.
   Global plan	Select the check box.
   Enable unrestricted enrollment	Select the check box.
   Year Periods	In the Availability section, select and add the relevant year periods to determine which years the plan should be available for enrollment.
   Options	Add the Pre-tax and After-tax options you created earlier.

4. Click the Eligibility step. In the Participation tab, select the plan, and click Create from the Actions menu. Then, in the Eligibility Profiles section, add the profile (that checks for full-time regular US employees) you created earlier.
5. Open the Enrollment step. At the Plan level, on the General tab, Option Limitation section, set the minimum number of options to 1, and the maximum number of options to 1. That’s because, according to the example, you want participants to select either the pre-tax option or the after-tax option, but not both.
6. At the Plan level, on the Life Event tab, add the Unrestricted life event to the plan. Complete these fields:

   Option	Description
   Field	Value
   Enrollment Period (start and end dates)	As of event
   Close Enrollment Period Date	When enrollment period ends
   Coverage Start Date, Previous Coverage End Date	Event, 1 day before event
   Rate Start Date, Previous Rate End Date	Event, One day before event

7. At the Pre-tax option level, on the General tab, complete these fields:

   Option	Description
   Field	Value
   Default Enrollment Rule	New - default; current - same enrollment and rates. In this example, you select this rule because you want to enroll new employees in the pre-tax option by default. You want to provide existing employees the option to change the contribution rate. In any case, if employees don’t make a choice, they will be enrolled in the pre-tax option by default.
   Enrollment Rule	Current - can keep or choose; new - can choose. In this example, for employees who are already enrolled, you want them to be able to retain the earlier contribution rate or enter a new rate. Employees who are enrolling for the first time can enter a new rate.
   Assign on default	Select this check box. In this example, you want to assign the contribution rate linked to the pre-tax option as the default rate.

8. At the After-tax option level, on the General tab, complete these fields:

   Option	Description
   Field	Value
   Default Enrollment Rule	New - default; current - same enrollment and rates. In this example, you select this rule because you want to enroll new employees in the pre-tax option by default. You want to provide existing employees the option to change the contribution rate. In any case, if employees don’t make a choice, they will be enrolled in the pre-tax option by default.
   Enrollment Rule	Current - can keep or choose; new - can choose. In this example, for employees who are already enrolled, you want them to be able to retain the earlier contribution rate or enter a new rate. Employees who are enrolling for the first time can enter a new rate.
   Assign on default	Select this check box. In this example, you want to assign the contribution rate linked to the pre-tax option as the default rate.

9. Save your changes.