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Timely remittance of employee deferrals to their retirement accounts remains one of the biggest areas of focus during plan audits. Therefore, it’s critical to ensure you are making these remittances in accordance with DOL regulations.

The Employee Retirement Income Security Act of 1974, better known as ERISA, specifies different types of fiduciaries for employee benefit plans. These fiduciaries are responsible for managing the plan in the best interests of participants.

One of the most common retirement plan errors is a missed deferral opportunity, or MDO. This occurs when an employer fails to execute an employee’s election to defer amounts to a qualified retirement plan.

Recent statistics indicate that the retirement crisis in the United States is very real. According to the Federal Reserve’s Report on the Economic Well-Being of U.S. Households, one-quarter of non-retired citizens have no retirement savings or pension whatsoever.

The Setting Every Community Up for Retirement Enhancement (SECURE) Act that was signed into law in late 2019 included a number of provisions designed to expand retirement plan coverage to more employees. One of these provisions requires employers to let certain part-time employees participate in the company’s 401(k) plan starting in 2024.

If your company is involved in a merger or spinoff, you’ll need to plan carefully for how your qualified retirement plan will be affected. Failure to plan ahead for the impact of a merger or spinoff on your plan could lead to unintended consequences.

When they hear the term “employee compensation,” most business owners think about base salary. But there are also other types of compensation that businesses may use as employee payment, such as bonuses, commissions, tips, overtime, car allowances, and even non-cash wages like gift cards and company stock.

Companies that sponsor qualified retirement plans have a fiduciary duty to prudently select and monitor the investment options offered in their plan. Failure to meet this fiduciary standard can expose plan sponsors to costly litigation in which they could face personal liability.

In recent years, regulators have intensified their focus on and scrutiny over retirement plan controls. Given this, it’s critical to ensure that the proper procedures and controls are in place for your qualified plan.