One of your most important duties as a retirement plan sponsor is to ensure that your plan is compliant with legal requirements—and it’s no easy task. The Employee Retirement Income Security Act (ERISA) and the Internal Revenue Code (IRC) each has specific requirements that plan sponsors must follow, and the current regulatory environment has led to increased scrutiny of plan practices.
One way to help ensure that you are complying with ERISA and IRC requirements is to review your plan annually and to follow administrative best practices. The list below identifies some of the most important requirements and offers considerations for minimizing your fiduciary risk. While this is not a substitute for a thorough plan review, it can help you feel more confident that you are doing all you can to effectively meet your plan responsibilities.
This list is not all-inclusive. It’s important to develop best practices that are tailored to your business needs and the requirements of your specific retirement plan. The IRS’s 401(k) Plan Fix-It Guide can help
you establish your own guidelines. You can access this material at www.irs.gov/retirement-plans/401k-plan-fix-it-guide.
If you need more information and guidance on whether your plan is in good order, please reach out to us. As retirement plan advisors, we not only know the compliance territory but also have the experience and expertise to help you manage a quality retirement plan.
Source: Adams, Nevin E., “10 Things You’re Probably Doing Wrong as a Plan Sponsor,” PLANSPONSOR, 08/2009.