IRS Compliance Testing: ADP/ACP Test

In order to ensure that employee benefit plans do not violate certain standards that the DOL/IRS believe are important, plans must be subjected to numerous compliance tests annually.  These tests are designed to ensure that the amount that employees are deferring is within certain maximum limits and that plans are not operating is a manner …

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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 …

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Do You Still Need a 401k Audit?

It’s 5500 season again and now the big question is upon you: Do you need to have an audit performed and an audit opinion attached to your 5500 before you send it in? Most people know that the general rule is that if you have fewer than 100 participants in the plan, you are considered …

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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 …

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Planned Changes to the Regulatory Definition of Fiduciary

The Employee Benefits Security Administration (EBSA) plans to amend the regulatory definition of “fiduciary.” A large number of plan sponsors rely on the services of pension consultants and financial asset appraisers. As such, in June 2010, EBSA will propose to amend the current definition to include these service providers, essentially making them subject to the …

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The Importance of Monitoring Your TPA

Oftentimes during a 401(k) plan audit, the employer will respond to various questions about their plan with the answer “Our TPA handles all of that for us.” Indeed it is very common for plan sponsors to hire third-party administrators (TPAs) to manage some of the plan’s day-to-day operations. While there is much to be gained …

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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 …

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