The Internal Revenue Service (IRS) is scheduled to launch a 401(k) compliance check in April. As 401(k) plans increasing become the key retirement plan for many workers, and the economic conditions persist, the IRS wants to get a closer look at the ever changing landscape.
The IRS check-up, which will cover both form and operational compliance, is structured to gather information to draft a 401(k) report and assist in identifying future IRS audit areas and educational outreach (see “401(k) Fix-It Guide” as an example of existing educational outreach materials). The attached memo contains Q&As that should help explain the scope of the program, key concerns and related action steps for all plan sponsors. If you have questions regarding the check-up or would like to receive updates on future developments, please click here.