A 401(k) plan sequence number is simply the number that the employer assigns to the plan. For example, if the 401(k) plan is the second type of qualified plan that is or has been sponsored by the employer, then its number will be 002. This number is then combined with the employer's tax ID number to make up the whole sequence number. Retirement plans such as SEP or SIMPLE IRAs should not be included in this numbering sequence, nor should non-qualified plans such as deferred compensation plans, split dollar plans, executive bonus plans or group carve-out plans. Only qualified plans that fall under ERISA guidelines should be included in this sequence.
401(k) Plan Sequence Number FAQs
A 401(k) plan is a retirement plan offered by an employer designed to help employees save for retirement.
A 401(k) Plan Sequence Number (PSN) is an Internal Revenue Service-issued identifier used to identify specific retirement plans. It enables the IRS to accurately track and audit the plan.
Your employer should provide you with your PSN when you enroll in their 401(k) plan. You can also request it directly from the IRS by completing Form 5300, Application for Determination of Employee Benefit Plan.
Yes, all employers offering a qualified 401(k) plan must provide the IRS with the PSN of their plan.
You will need to provide basic information about your employer and their qualified retirement plan when applying for a PSN from the IRS. This includes the name and address of the employer, as well as details about how the plan works and who participates in it. You may also need to provide additional documents or evidence of compliance to satisfy certain requirements before being approved by the IRS.
True Tamplin is a published author, public speaker, CEO of UpDigital, and founder of Finance Strategists.
True is a Certified Educator in Personal Finance (CEPF®), author of The Handy Financial Ratios Guide, a member of the Society for Advancing Business Editing and Writing, contributes to his financial education site, Finance Strategists, and has spoken to various financial communities such as the CFA Institute, as well as university students like his Alma mater, Biola University, where he received a bachelor of science in business and data analytics.
To learn more about True, visit his personal website, view his author profile on Amazon, or check out his speaker profile on the CFA Institute website.