Don’t wait for an IRS audit to find out that your 401(k) plan is out of compliance.
The IRS’s 401(k) Plan Checklist is a helpful tool to help assess whether your plan has fallen into the trap of the IRS’s Top Ten Failures submitted for its Voluntary Correction Program. The checklist is largely based on rooting out those particular failures.
As we wrote about in our article When Haste DOESN’T Make Waste, these errors grow in scope and complexity as time passes and the cost of correction continues to grow. That’s especially true if the error is uncovered in an IRS audit.
As we approach year end, a plan review starting with the IRS’s checklist might be a time and money saver.