Retirement

Don’t wait until it’s too late…Review this checklist before year-end

Amanda Hagerty
Reading time 2 Mins
Published on Dec 1
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If you’re a Plan Sponsor providing a 401(k) plan for your employees, make sure you check off these year-end items as you prepare for the new year.

1) Take Inventory:
Review your plan documents file. Confirm that all of your modifications are properly recorded and signed, and return a signed copy to your TPA and/or plan record keeper. Ideally you should keep a copy of every plan document that was ever adopted for your plan.

2) Make sure you’re Covered:
Check your Employee Retirement Income Security Act (ERISA) bond. If you’re required to maintain an ERISA bond, make sure that your policy covers the proper amount (generally 10% of plan assets up to a maximum of $500,000).

3) Document Notice Delivery:
Plan members must be given information about the plan, but the information required depends on your plan design. Make certain that you develop internal policies and procedures to ensure the notices that are required for your plan are provided to current and new employees in a timely manner. Steven Kaye, majority owner of AEPG Wealth Strategies recommends that an employer keeps track of the delivery date, the method and the delivery list for every notice for which the employer is responsible.

4) Check Contributions:
Before you close the books for the year, get an estimate from your TPA about your company contribution liability for the year. Now is the time to make adjustments if necessary!

5) Data Collection:
Gathering employee records, compensation information, and hours worked (if applicable) helps your TPA understand what happened at your company during the year. If any shareholders or partners were added or deleted, or if corporate officers changed, then collect that information and share with your TPA. Also, inform your TPA if there are family members related to the business owners working for the company (especially if the names are different).

For more information on the year-end checklist, you can find the full article from BrightScope here.


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