Consequences of Careless 401(k) Compliance

Plan governance is a key component of Defining a Retirement Plan Standard of Excellence.  It is also important to remember that all retirement plans have to remain in compliance with the Internal Revenue Code, ERISA, and the plan documents at all times.

The attached article outlines 10 common compliance defects which can occur because the plan sponsor does not know the responsibilities associated with sponsoring a qualified retirement plan.  This is why it is important that advisors and other service providers, working with the plan sponsor, spend time informing and educating the plan sponsor on their responsibilities.

In the end, it is imperative to remember that employer sponsored retirement plans require a team of professionals working together to have a successful plan for both the employer and the participants.


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