At least once a year, plan sponsors should conduct annual reviews.
In addition to reviewing investments, the IRS recommends plans to be reviewed for operational compliance. This includes an extensive list which can be incredibly burdening! Formalizing your 401k review procedures can help plan sponsors identify and prevent mistakes in administration. Left uncorrected, mistakes could endanger your plans tax favored status and/or result in fines and expensive corrections. While investment and operational reviews are critical it's also important to run a check-up on overall 401K plan health. A thorough evaluation may be performed during your annual review, however, you may not even know what needs to covered or how to document these meetings. Contact us today to proactively address these concerns before you are notified by the regulating bodies that an audit is coming to you!