The Importance of the Plan Document

It is important to understand how your Plan works.  Those responsible for the management and oversight of the retirement plan must follow certain rules for operating the Plan, handling the plan’s money, and overseeing the firms that manage the money.  One area that is crucial to the operation of any Plan is knowing and following …

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Plan Transfers

In today’s market the mergers and acquisitions of businesses are on the rise.  If the company maintaining your 401(k) plan is purchased, or merges with another company, what issues should you be considering?  There are risks associated with the accounting of plan transfers that the plan administrator should be aware of.  Plan transfer risks include: …

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Plan Restatements and Amendments

Have you recently restated or amended your plan document?  If yes, are you confident that your plan is being administered in accordance with the updated sections?  A common fallacy of the plan administrator is the sole reliance on the third party administrator (“recordkeeper”) to ensure that the plan is being properly administered, subsequent to the …

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ERISA Attorneys – Why Have One?

One of the key reasons to hire an Employee Retirement Income Security Act (“ERISA”) attorney is to complete a plan document that will be in compliance with all ERISA regulations. The plan document should be reviewed every two years by your attorney for any amendments that need to be made in order to stay in …

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Enrollment Documentation

Did you know that one of the most common errors found in a 401K audit is due to a lack of proper documentation of enrollment? When a company is required to have their 401K plan audited it is a good idea to make sure that there are proper procedures as well as documentation in place …

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Open Enrollment

Open Enrollment Time Again – As a Plan Administrator what questions should you be asking yourself? • First and foremost you should ensure that the Plan Document and your Summary Plan Description (SPD) is up-to-date and supports the plan administrative practices that the Plan Administration has put into place.  For example, if your Plan Document states …

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Need Help Completing Your Voluntary Correction Program Submission?

The Voluntary Correction Program (VCP) allows a plan sponsor to pay a limited fee and receive the IRS’s approval of the correction while also remaining a qualified plan.  The VCP program is not a program used by those who have already had an examination by the IRS and must correct the error, but for the …

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Leased Employees – Do You Have Them?

The Employee Plans Compliance Unit (EPCU) – has recently completed a project on how benefit plan’s are treating leased employees in regards to qualified plan purposes.  What is a leased employee you may ask? According to the IRS, a leased employee generally is an employee meeting each of the following attributes: 1) Agreement – agreement for …

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Requesting Original or Corrected Determination Letters from the IRS

As a plan fiduciary, there is a very important letter that should be on file with your plan documents.  This letter is known as the determination letter.  The determination letter is a letter the IRS sends to you letting you know the tax status of your 401k plan.  This letter lets you as the plan …

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IRS Employee Plans Examination Process

In my previous blog, I discussed the oversight responsibilities of the IRS and Department of Labor over 401(k) plans, and what to expect if your plan is selected for an audit. One type of audit you may encounter is an IRS Employee Plan Examination, which is essentially designed to identify areas of noncompliance, develop corrective …

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