Census Basics and Ensuring Census Accuracy

The census is prepared by the plan sponsor on an annual basis and includes the social security number, name, date of birth, date of hire, number of hours worked during the year, date of termination (if applicable), yearly compensation (which needs to meet the definition of compensation in the plan document), employee contribution for the …

Keep Reading

401(k) Abuses

As a fiduciary to a 401(k) plan or even as a participant in your company’s 401(k) plan, there are some warning signs you can watch for when it comes to how the Company is handling their 401(k) fiduciary responsibilities including contributions.  The Department of Labor has seen many instances of fraud within 401(k) plans including …

Keep Reading

Proposed Changes by the DOL to the Definition of “Fiduciary”

As a follow up to my blog, “Planned Changes to the Regulatory Definition of Fiduciary,” the Department of Labor (DOL) has issued a proposed regulation that further defines when a person becomes a fiduciary of a plan by providing investment advice for a fee or other compensation, thus making them subject to the Employee Retirement Income …

Keep Reading

What Does it Mean if Your Form 5500 is Late?

As the October 15th deadline looms closer, many of our clients are asking the question; “What does it mean if our Form 5500 is late?”  If you haven’t looked into this question before, you will be surprised at the substantial penalties that can be assessed.  The DOL takes failure to file return/reports very seriously.  Below …

Keep Reading

Have You Filed Your Form 5500?

How to file The July 31st filing deadline has come and gone. Did you file an extension? If you’re not sure, check with your TPA.  We are just one month away from the extended filing deadline, October 15th. Have you filed yet? Beginning January 2010, all Form 5500’s are required to be submitted online through …

Keep Reading

Selecting a 401k Auditor

As noted in April 6, 2010 post, “Do You Still Need a 401K Audit?” there are several factors to consider in determining whether or not your 401K Plan needs an audit.  After the decision has been determined that an audit will be required for your 401K Plan, the next big question for the Plan administrator …

Keep Reading

DOL Formal Notices of Rejection: What to Expect if You Receive One

Formal Notice of Rejection (NOR) letters were recently sent by the Department of Labor (DOL) to over 300 plan administrators for failing to attach an audit report to their 2008 Form 5500. Currently, these notices were sent to plans deemed to be large based on the size of the plan’s assets. A second round of …

Keep Reading

Selecting Third Party Administrators

The act of hiring a third party administrator (“TPA”) is one of the responsibilities of a Plan Sponsor. One of the first steps in this hiring process is to sit down with your Plan Committee and determine what exactly your needs are in a TPA. Does your Company have specific situations that will need to …

Keep Reading

New Auditing Requirements for 403(b) Plans

The 2009 Form 5500 has been revised, and it requires many previously unaudited 403(b) plans to be audited for the first time. Historically, there have been limited filing requirements for 403(b) plans. In fact, most 403(b) plans are often treated more as individual account arrangements than a formal plan. These changes made by the Department …

Keep Reading