Most Common 401(k) Violations
Despite all the work that goes into setting up a 401(k) plan, what many trustees don’t know is just how little it takes to lose your plan’s tax-qualified status. Think about your 401(k) plan management process for a minute. If you’re like most employers, every pay period you generate information or a report with deductions, loans, demographic updates, and ultimately “push the button” to transfer the necessary data and funds to your retirement plan vendor. This ultimately begs the question: What’s your back-up plan if your plan administrator happens to be unavailable on the day when your 401(k) contribution files are due? Who’s knowledgeable and qualified enough to fill in during that time? And if someone else cannot handle the process, what is the impact of not getting these updates to your 401(k) provider on time? We have created a 401(k) Violations Whitepaper to help you answer these questions and avoid costly 401(k) violations.
