401(k) Guide
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.
January 2017
Mistake: You haven’t updated your plan document within the past few years to reflect recent law changes.
February 2017
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.
March 2017
Mistake: You didn’t use the plan definition of compensation correctly for all deferrals and allocations.
April 2017
Mistake: Employer matching contributions weren’t made to all appropriate employees.
May 2017
Mistake: The plan failed the 401(k) ADP and ACP nondiscrimination tests.
June 2017
Mistake: Eligible employees weren’t given the opportunity to make an elective deferral (exclusion of eligible employees).
July 2017
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.
August 2017
Mistake: You haven’t timely deposited employee elective deferrals.
September 2017
Mistake: Participant loans don’t conform to the requirements of the plan document and IRC Section 72(p).
October 2017
Mistake: Hardship distributions weren’t made properly.
