In an ideal world, you wouldn’t have to worry about the credentials of your plan auditor, whether or not your participants are receiving all required plan communication notifications, or how to adequately monitor hardship distributions. Yet, we all know Shangri-La does not exist. Instead, as a retirement plan sponsor, you have to constantly consider what ifs and need-to-knows, plus whether or not you have the best outside help. Whew!
Hopefully, this month’s articles will help you out a bit! First, I have a rundown on the key retirement plan communication requirements you must provide employees. While this is by no means the entire list, it does provide you with some information on the top notifications you should make sure your plan administrator is supplying. Don’t Forget the Must-Do Communications.
You may also want to check up on your hardship distribution rules. Although not required, most 401(k) plans do include stipulations for hardship withdrawals, so it’s important to annually review your rules and then make sure they are properly executed. To learn the do’s and don’ts with hardship distributions, read Follow Hardship Distribution Rules to Keep Plan Status.
Lastly, while not quite another do’s and don’ts list, you may definitely want to consider a what-to-look-for list after reading my summary of the recent U.S. Department of Labor research on plan audit deficiencies. The report found plan audits have major flaws about 39 percent of the time. To read more, check out Choose Your Plan Auditor Carefully
Some pretty weighty topics this month! If you have any questions about these, or other subjects, please feel free to draw on my expertise and help at any time.
