401(k) Plan Checklist from the IRS
The IRS has posted a
free 401(k) plan checklist for plan sponsors to use to review the requirements for operating a 401(k) plan. This list is provided to help plan sponsors keep their plans in compliance with many of the important rules. The IRS cautions that "this list is only a guide to a more compliant plan....and should
not be used as a substitute for a complete plan review."
The 10-question checklist is supplemented with 57 pages of helpful information including an overview of 401(k) plans and how to find and fix mistakes using available correction programs. According to the IRS, "many mistakes can be corrected easily, without penalty and without notifying the IRS."
Some of the checklist items are:
- Has your plan document been updated within the past few years?
- Is the plan's definition of compensation for all deferrals and allocations used correctly?
- Were all eligible employees identified and given the opportunity to make an elective deferral election?
- Have you timely deposited employee elective deferrals?
Click
here for the free 401(k) plan checklist from the IRS.
Please
contact us with questions about your 401(k) plan or if you're considering starting a plan.