401(k) retirement plans are among the most important benefits a business can offer, but like anything else, they need maintenance. Paying a little bit of attention to what’s going on in your 401(k) plan now can bypass some big headaches down the road.
To help business owners and manager make sure their 401(k) plans are operating the way they are supposed to, Barbara Weltman at Big Things for Small Businesses just published a checklist for a self-audit.
Formatted as “Yes” or “No” questions, Weltman’s checklist covers eight subject areas that businesses should review regularly.
“If you checked ‘no’ in any box, you may need to take corrective action now,” Weltman writes. “Discuss your situation with your CPA and/or a benefits advisor.”
Here’s a sampling of questions:
- Have you provided required notice for employee’s elective deferrals in 2020?
- Are you timely crediting employee elective deferrals to their accounts?
- Have you reviewed your plan documents to make sure they’ve been updated for law changes?
- Have you timely filed IRS Form 5500 with the Employee Benefits Security Administration (ESBA)?
- Have the new final regulations on hardship distributionsbeen incorporated into the plan?