It is critical to keep your company’s 401(k) plan in compliance with numerous federal laws and regulations. Plans that are found to be in violation risk expensive penalties and disqualification.
The IRS recently issued this list of 11 potential errors:
1. Has your 401(k) plan document been updated within the past few years to reflect recent law changes?
2. Are the plan’s operations based on the terms of the plan document?
3. Is the plan’s definition of compensation for all deferrals and allocations used correctly?
Dispatches From The Front 