Sign and timely filing of the following requirement government reports:

  • Form 5500
  • Form 8955-SSA
  • Form 5558, extension to file 5500/8955-SSA, will be automatically filed if a signature-ready 5500 has not been made available by the recordkeeper at least 30 days in advance of the 5500 due date. The fee for filing Form 5558 is $100.
  • Verify that filings such as Form 5500 Annual Report with applicable Schedules, Form 5558 extensions, and PBGC premium filings are prepared and timely submitted. Sign such filings as Plan Administrator.
    Verify that tax reporting such as Forms 1099-R, 1096, and 945 are timely prepared and filed.
  • The plan sponsor and/or recordkeeper will be responsible to prepare, distribute, and file the following forms as required: Form 1099-R, Form 1096, Form 941, Rollover Notices, and Notices of Right to Defer Distribution.

Plan Audit

  • Select and monitor Plan auditor if one has not been retained by plan sponsor. Recordkeeper and plan sponsor will be responsible for providing auditor with all necessary information. Plan sponsor will be responsible for the cost of the audit and the auditor’s fees.
  • Verify that all required compliance testing is performed, including 401(a)(4) nondiscriminatory allocation, 401(a)(26) minimum participation, 402(g) excess deferrals, 404 maximum deductible contributions, 410(b) minimum coverage testing, 414(s) non-safe harbor compensation, ADP/ACP, 415 annual addition, and 416 top heavy.
  • Select and monitor Plan auditor in accordance with joint DOL/AICPA guidelines if one has not already been retained by Plan Sponsor.
  • Serve as liaison with auditor

Distributions:

  • Verify against plan document and IRS rules.

Hardship and Other Distributions; Loans and Loan Repayments; Contributions:

  • Periodic review of recordkeeper’s processes for compliance against Plan Document and IRS rules.
  • For loans, ensure existence of written loan policy, and periodic review of recordkeeper’s process against loan policy, Plan Document, and IRS rules, including deemed distribution requirements.
  • Verify existence of written loan policy
  • Verify loan documentation
  • Enforce quarterly deadlines and deemed distribution requirements

Corrections:

  • Report any instances of operational or disqualifying defects discovered
  • Identify options for voluntary correction, including SCP, VCP, Audit CAP, DFVCP, and VFCP
  • Calculate, prepare, and submit correction to government agencies as necessary, and implement corrections.
  • Verify proper source accounts and tax basis are maintained Verify proper investment of contributions of defaulted participants
  • Verify rollovers into the Plan are from qualified sources

Participant Notices, Statements and Disclosures

  • Verify preparation and distribution of notices and disclosures. The default method of distribution will be electronic.
  • Verify compliance with DOL rules on electronic disclosure.
  • Verify distribution includes beneficiaries, alternate payees, and other interestedparties.
  • Ensure preparation and distribution of all notices and disclosures, including non-routine disclosures.

Compliance Testing:

  • Verify that all required compliance testing is performed, including, as applicable, 401(a)(4) nondiscriminatory allocation, 401(a)(26) minimum participation, 402(g) excess deferrals, 404 maximum deductible contributions, 410(b) minimum coverage testing, 414(s) non-safe harbor compensation, ADP/ACP, 415 annual addition, and 416 top heavy.
  • Provide correction options to Plan Sponsor for test failures.

Domestic Relations Orders:

  • Review the qualified status of domestic relations orders.
  • Review account segregations and distributions for alternate payees.
  • Performance and fees.

QDROs:

  • Review the qualified status of domestic relations orders.
  • Review QDRO account segregations and distributions.

Forfeitures and Suspense Accounts:

  • Monitor that all unallocated monies are used in accordance with Plan Document and relevant rules.

Claims and Benefit Determinations:

  • Verify ERISA-compliant claims process is established and implemented.
  • Verify benefit determinations are made in accordance with Plan Document and ERISA.

Annual Plan Review Process:

  • Establish Plan governance process and checklist.
  • Provide annual review report to document compliance.
  • Review service provider
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3(38) Information

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402(a) Information

By sponsoring a retirement plan, your company is liable for the plan’s operations. That liability filters down personally to all owners, officers… More.