NEWSLETTERS
 Volume 10, Issue 1 .................... June 2010

IRS 401(k) Compliance Check Questionnaire is Coming

According to the Special May Edition of the IRS Employee Plan News, during the week of May 17th the IRS Employee Plans Compliance Unit (EPCU) will send a letter and instructions to 1,200 employers sponsoring 401(k) plans instructing them to complete a 401(k) Compliance Check Questionnaire.  The questionnaire must be completed online.

All plan sponsors will complete the same Questionnaire; however, some questions may only apply to plans with particular features. Failure to respond or provide complete information will result in further action or examination of the plan.

According to the IRS, the information gathered from the Questionnaire will provide a comprehensive view of 401(k) plans and will help the IRS maximize its resources for education, outreach, guidance and enforcement efforts while minimizing the burden to compliant plan sponsors.

EPCU will use a secure website to collect responses on the following topics:

  •  Demographics

  • Participation

  • Employer and employee contributions

  • Nondiscrimination & Top-heavy  testing

  • Distributions and plan loans

  • Other plan operations  

  • Automatic contribution arrangements    

  • Designated Roth features

  • IRS voluntary compliance and correction programs

  • Plan administration

According to the IRS, the Questionnaire was developed because of the critical role 401(k) plans play in our private retirement system.  There are nearly half a million 401(k) plans in America covering over 50 million participants.

Contact Administrative Retirement Services, Inc., if you have questions about completing the IRS 401(k) Compliance Check Questionnaire.

© Administrative Retirement Services, Inc. 2010
Published by Administrative Retirement Services, Inc., Copyright 2010 by Administrative Retirement Services, Inc. Reproduction in whole or in part is prohibited except by written permission. All rights are reserved. Information has been obtained by Administrative Retirement Services, Inc. from sources believed to be reliable. However, because of the possibility of human or mechanical error by our sources, Administrative Retirement Services, Inc. or others, Administrative Retirement Services, Inc. does not guarantee the accuracy, adequacy, or completeness of any information and is not responsible for any errors or omissions or the result obtained from the use of such information. Readers should seek specific advice before acting with regard to the subjects mentioned here.

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