Retirement plan compliance is part of a team effort, a recent
article reminds plan sponsors. The article, authored by employee benefits law firm Chang, Ruthenberg & Long, discusses several compliance-related issues such as Contribution Nondiscrimination Testing (CNT) and Form 5500 materials.
A big part of avoiding problems with compliance-related matters is for the plan sponsor and plan provider to clearly understand their roles and responsibilities. These include the plan sponsor:
- Understanding that since CNTs and Form 5500 processing is done by the plan provider on a year-end basis, dealing with events outside of this time span (of one year) calls for special efforts and attention
- Making your new plan provider aware of any potential errors made by your former plan provider
- Confirming that the information you send your plan provider is the most up to date
- Working together with your plan provider to ensure that the correct and relevant information about the plan is included on the plan census
- Understanding what plan records to save and for how long
NADART works with our plan sponsors to help them understand their compliance responsibilities. If you have any questions as to how NADART can help your plan, please contact us at (800) 462-3278, ext. 7254 or nadart401k@nada.org.