Compliance Profile of Section 401(k) Plans: Results of an IRS Survey |
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The Compliance Profile of 401(k) Plans shows that potentially disqualifying errors occurred in plans of all sizes, from the smallest to the largest. The errors occurred in a wide range of areas, including rollover distributions, nondiscrimination provisions and loans. While the survey results are not necessarily definitive and some of the violations reported in the survey no longer apply because of recent changes in the law, we hope that publication of the survey results will highlight potential problem areas and help plan sponsors and employers maintain their plans.
Help is available. For some time, the IRS has had a number of correction programs to help plan sponsors and employers retain the qualified status of their plans. Since 1992, several voluntary correction programs have allowed employers to correct violations in their plans. We have also established a closing agreement program for form violations and plans under audit. All of these programs have been expanded, revised and combined into a coordinated system of corrections programs - the Employee Plans Compliance Resolution System, or EPCRS.
Both the compliance profile and the revenue procedure may be viewed, printed and searched by using the freely available Adobe Acrobat Reader software.
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Page Last Reviewed or Updated: March 10, 2009