Being selected for a Department of Labor (DOL) audit is not exactly a prize most plan sponsors want or intend to win. Often, plan sponsors think service providers will take the blame when compliance issues arise. But plan sponsors are ultimately responsible for plan administration and operation. Plan sponsors that don’t realize this can suffer devastating consequences and become a statistic on the agency’s annual enforcement report.
Plan compliance doesn’t need to be a barrier to offering a 401(k) plan to employees. Thanks to advances in technology, many 401(k) service providers are well-equipped to run the plan while you tend to your business’s needs. Establishing and maintaining a 401(K) plan that is compliant with federal regulations is demystified with this overview of necessary steps.
In May 2015, the U.S. Department of Labor (DOL) released a report titled, “Assessing the Quality of Employee Benefit Plan Audits,” which noted that almost 40% of plan audits had “major deficiencies.” Included in the report were recommendations, one being that the DOL increase its outreach efforts to educate plan sponsors and administrators of employee […]
Tips to Ensure Your Employee Benefit Plan is in Compliance
Now that we’ve started a new year, now is a good time to look back and evaluate the processes and procedures related to your organization’s employee benefit plan(s). Your objective is to confirm your Plan is operating in compliance with the requirements of the Internal Revenue […]
Recently, the IRS has issued new procedures that will impact most 403(b) plans. The first relates to the IRS granting an opinion on the plan’s tax status, commonly referred to as an IRS determination letter. The second provides sample language in drafting of new 403(b) plans. The third and final new significant procedure contains new guidance for correcting […]