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IRS Top 10 List of Failures in Administration of Retirement Plans

Blog post

ADP recently conducted their Fall ADP Pro Virtual Summit. One of the sessions covered 2019 Retirement Plan Compliance & Regulatory Updates. An area we found interesting in the update was the IRS’ top 10 failures when administering a retirement plan. With year-end quickly approaching, we thought it appropriate to share since there might still be time to act if any of the following issues apply to your plan:

1. Failure to amend the plan for tax law changes by the end of the period required by the law.

2. Failure to follow the plan’s definition of compensation

3. Failure to include eligible employees in the plan or failure to exclude ineligible employees

4. Plan loans that do not comply with regulations

5. Impermissible in-service withdrawals

6. Failure to satisfy required minimum distribution rules

7. Employer is not eligible to sponsor a plan

8. Failed ADP/ACP nondiscrimination tests not corrected timely

9. Failure to provide the minimum top heavy contribution

10. Failure to limit contributions to the 415 limit ($56k)

If any of these issues are a concern to you, feel free to contact us and a member of your account team or an SIG representative will be in touch to discuss with you.