Lookthrough issues erisa8/3/2023 ![]() Opportunity to Enroll: All employees who have met the plan age and service requirements must be given the opportunity to enroll.Notice of Plan Change: Participants must be notified of any changes to the plan 30 to 90 days before the effective date of the change.Annual Participant Fee Disclosure: All plan-eligible employees, terminated employees, and beneficiaries with an account balance must receive a participant fee disclosure every 12 months.The IRS considers any failure to strictly follow the plan document's terms an operational defect, which, if not remedied, can result in the plan's disqualification. Adherence to Plan Document: Ensure the plan management continuously adheres to the plan document's terms.Correct any ADP/ACP test failures, and pay 10% excise tax. Send applicable notices to participants, including installments of or changes to a safe harbor 401(k) plan, Qualified Default Investment Alternative (QDIA), or automatic enrollment. Fourth Quarter: Provide third-quarter benefit statements.Distribute a Summary Annual Report for the prior year to plan participants. If the plan document was modified during the prior year, distribute a new Summary Plan Description to plan participants. File Form 5500 for the prior year or file Form 5558 for a 2.5-month extension. ![]() Third Quarter: Provide second-quarter benefit statements. ![]() (The age for RMD withdrawals was raised to 73 from 72 as of Jan. For plan participants turning age 73 in the prior year, distribute first-year required minimum distributions (RMDs). Distribute excess deferrals made above the IRC Section 402(g) limit.
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