IRS Says it Might Be Time for a Retirement Plan Checkup

By NAPA Net Staff • 1/2/2015 • 0 Comments

Have the retirement plans you work with had a checkup in the last year? If not, the IRS says one could be overdue. For example, the IRS asks:

  • Has the plan document been updated within the past few years to reflect recent law changes?
  • Is the plan being operated in accordance with the terms of the plan document?
  • Are all eligible employees participating in the plan?

The IRS says that such checkups can uncover the following common mistakes:

  • Not covering the proper employees
  • Not giving employees required information
  • Not depositing employee deferrals timely
  • Not depositing employer contributions timely
  • Not limiting employee deferrals and employer contributions to the proper maximum limits

To help, the IRS has provided a series of one-page checklists that can be useful conversation starters with plan sponsor clients and prospects. The IRS has also made available free “fix-it guides” with tips on how to find, fix and avoid potential errors with:

  • SIMPLE IRAs 
  • SEPs
  • SARSEPs
  • 401(k) plans
  • 403(b) plans

The IRS cautions that these checklists are for use on a voluntary basis, and should not be filed with the IRS. Also, remember that the checklists aren’t meant as a comprehensive review of every aspect of a plan — just an easy way to start.

More information is available here

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