CBIZ 401(K) Operational Compliance Assessment

CBIZ 401(K) Operational Compliance Assessment










The CBIZ 401(k) Operational Compliance Assessment™


With years of experience advising on 401(k) plans, CBIZ Retirement Plan Services often uncovers operational issues that go unnoticed because they are outside the scope of services of a traditional 401(k) plan record keeper. Unfortunately, these problems can result in significant risk. Ask yourself the following questions to see if your plan may have hidden compliance issues.


1. When was the last time I reviewed my plan document to see that I am following the provisions stated in the document and that my plan is up to date with regulatory amendments?
Failure to comply with the terms of the plan will result in an operational failure that requires a correction to the plan.


2. Am I sending out all of the required notices to participants on a timely basis?

There are so many required notices and specific timing for notices, it can be hard for a Plan Sponsor to keep track of.


3. Are the plan contributions being deposited in accordance with the Department of Labor (DOL) guidelines and in accordance with the Plan Document?
Failure to remit participant deferral in a timely manner as described by the DOL can result in a costly error. It is also important to review the timing of submitting employer contribution.


4. Does the record keeper have all of the required demographic information for participants in order for the plan to run smoothly?
A discussion of the schedule for sending demographic files to the Record keeper, and a review of key demo- graphic information can eliminate some common issues and ensure that your participants are being serviced correctly.


5. Is each of the components of compensation flowing through your payroll treated correctly under both the terms of the plan and the IRS rules?
Compensation issues are not usually caught by your record keeper and can continue for years leading to liability for incorrect contributions and potential loss of tax-qualified status.


6. Are participant loans being administered in accordance with the plan provisions and does the plan have a loan delinquency tracking procedure?
Certain loan delinquency errors can only be corrected with a costly correction method involving an IRS filing.


7. Is the plan administering all type of distributions correctly, include in-service withdrawals, required minimum distribution and qualified domestic relations orders(QDRO’s)
It is important to understand that different types of money can have different withdrawal restrictions.


8. Does the plan offer Employer Stock as an investment option?

There are specific rules and regulations that need to be followed when employer stock is offered in a 401(k) plan, including identifying officers, passing through voting rights, and the regulatory filings.


Don’t wait for an IRS audit to find out if your plan is compliant. If you have any doubts related to the questions posed above, contact the experts at CBIZ to help you reveal and remediate any potential hazards.


Learn more at www.retirement.cbiz.com or call (866) 560-2431.


CBIZ Retirement Plan Services   Investments and advisory services offered through CBIZ Financial Solutions, Inc., member FINRA, SIPC and SEC Registered Investment Adviser, dba CBIZ Retirement Plan Advisory Services. CBIZ Financial Solutions, Inc. is a subsidiary of CBIZ, Inc. (NYSE Listed: CBZ) 6050 Oak Tree Blvd. S., Suite 500 • Cleveland, OH 44131