If you offer a 401k plan for your employees, then you will find that there are numerous tasks that must be completed to be in compliance with ERISA. ERISA is the Employee Retirement Income Security Act of 1974 that protects retirement assets of Americans by implementing rules to ensure plan fiduciaries do not misuse the plan assets.

Government reporting, nondiscrimination testing, participant disclosure and plan document maintenance are the four areas that must be completed and reported on each year to remain compliant.

A few of these tasks include:

Quarterly benefit statements to participants

File Form 5500 or extension form

Provide any applicable notices to participants for 2018:

Safe harbor 401k plan notice

Qualified default investment alternative (QDIA) notice

Automatic (negative) enrollment notice

Distribute summary annual report (SAR) to participants

Correct any ADP/ACP test failures with 10% excise tax

Make safe harbor or QNEC contributions

Sign and date any discretionary amendments to the plan document

Distribute “post-first year” required minimum distributions (RMDs) to participants

AND MORE!

Executing these tasks within the required deadlines while maintaining fourth quarter profits can be difficult. Not following thorough in time will result in penalties.