Compliance Testing and Administration

Compliance Testing and Administration

The following is a brief summary of the pertinent retirement plan administrative services we provide for our clients:

401(k) and 401(m) Discrimination Testing

Complete 401(k) (ADP)-discrimination testing and 401(m) (ACP)-discrimination testing for employer matching contributions, if applicable.

401(a)(4) Discrimination Testing

Complete discrimination testing for benefits, rights, and features.

IRS Section 404 – Maximum Tax Deduction

Determine that the total employer contributions (if any) to the retirement plan are within the deductible limits of Internal Revenue Code Section 404.

IRS Section 410(b) – Coverage

Review participation levels to ensure compliance with Internal Revenue Code Section 410(b) minimum coverage requirements.

IRS Section 416 – Top-Heavy

Complete top-heavy testing in accordance with Internal Revenue Code Section 416.

IRS Section 402(g) – Maximum 401(k) Limit

Monitor compliance with Section 402(g) limits on maximum annual deferral contributions for individual participants.

IRS Section 414(v) – Catch-up Contributions

Determine and account for catch-up contributions for participants having attained age 50 on or before the end of the year.

IRS Section 415 – Combined Total Contribution Limit

Monitor compliance with Internal Revenue Code Section 415 limits on combined total contributions for individual participants.

Track Money Sources

Separately track and account for various contribution sources (401(k), matching, and rollover). Track cost basis where required.

Plan Design

Confirm that plan administrative practices follow and are consistent with plan documentation. Identify differences and resolve either through amending documentation or changing administrative practice.

Plan Governance

Identify compliance weak points and provide best practices guidance for addressing them.

Online Access

Plan sponsor has web-based access to plan and participant level information for inquiry, reporting, audit and transactions.

Benefit Payments (terminated employee, hardship distributions, QDRO’s, etc.)

Process distributions, compute amounts payable and provide information for Forms 1099-R and 1096.

Government Filings

Complete IRS Form 5500 (with attachments), Form 8955-SSA, and the Summary Annual Report.