IRS Reminds Plan Sponsors About Plan Checklists

The Internal Revenue Service offers one-page checklists to help with reviewing retirement plan operations.
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A retirement plan’s care should include a regular review of its basic operations, according to the Internal Revenue Service (IRS).

The IRS offers one-page checklists for SIMPLE IRAs, SEPs, SARSEPs, 401(k) plans and 403(b) plans to help plan sponsors start their review. Answering “no” to any checklist questions signals a potential mistake in plan operation.

The IRS says common mistakes revealed by checklists may include:

  • not covering the proper employees;
  • not giving employees required information;
  • not depositing employee deferrals timely;
  • not depositing employer contributions timely;
  • not following the terms of the plan document; and
  • not limiting employee deferrals and employer contributions to the proper maximum limits.

Each checklist links to a Fix-It Guide with tips about how to find, fix and avoid each potential error.

More information, including links to the checklists and fix-it guides is here.