Welcome to the 401(k) Plan Fix-It Guide. We often hear many questions and see many mistakes when it comes to 401(k) plans and wanted to give you a monthly update with the most common mistakes and solutions, along with some fun BBQ and drink recipes to brighten up your year.
Mistake: You haven’t updated your plan document within the past few years to reflect recent law changes. What’s the fix?
Mistake: You didn’t base the plan operations on the terms of the plan document. Failure to follow plan terms is a very common mistake. What’s the fix?
Mistake: You didn’t use the plan definition of compensation correctly for all deferrals and allocations. What’s the fix?
Mistake: Employer matching contributions weren’t made to all appropriate employees. What’s the fix?