Pre-approved plan
Solo 401(k) document drafted by a sponsor and pre-approved by the IRS via opinion letter — adopting employers rely on the letter.
Definition
A pre-approved plan is a master, prototype, or volume submitter plan document drafted by a financial institution, brokerage, or advisor and reviewed by the IRS. The IRS issues an opinion letter dated for each 6-year remedial amendment cycle. An adopting employer relies on the opinion letter rather than seeking its own determination letter. Form 5500-EZ plan characteristic code 3D applies to pre-approved plans.