12 Failures

There are a number of scenarios that are critically important to keeping retire plans on track. Failures can cause compliance nightmares that no business owner wants to deal with.

We invite you to review these real world examples and talk to us about how we can help you reduce risk and potential liability.

The IRS has identified the following as the top 12 mistakes employers make in managing their 401(k) plans. Here’s our take:

In the following examples, we’ll look at how each mistake occurred and suggest possible solutions as well as ways to avoid these problems in the future. We also discuss how Fiduciary Outsourcing can help.

12 Failures

Failure to update plan documents to reflect recent law changes or voluntary changes made to the plan’s administration

Not using the correct definition of compensation

Not calculating the correct match

Not running an ADP or ACP test or failure to correct a failing test

Not allowing employees to defer on time or failure to properly implement an employee’s deferral election or automatic enrollment

Not limiting 401(k) deferrals to allowable limits

Not timely depositing 401(k) deferrals and loan repayments

Not administering participant loans properly

Not following the top heavy rules

Not timely filing a form 5500-series return

Not starting defferels properly

Not following the terms of the plan document