Consulting Services
Compliance & Regulatory Support
Ensuring compliance with 401(k) regulations and providing regulatory support is crucial for plan sponsors to fulfill their fiduciary responsibilities and maintain the integrity of the retirement plan. Here are some topics for consideration. If you have any questions concerning the following topics, please schedule an appointment to discuss.
Stay Informed About Regulations
Keep abreast of changes and updates to federal laws and regulations governing retirement plans, including ERISA (Employee Retirement Income Security Act), IRS regulations, and Department of Labor (DOL) guidelines.
Engage Legal and Compliance Experts
Consult with legal counsel or compliance experts specializing in retirement plans to interpret regulations, provide guidance on compliance issues, and ensure adherence to fiduciary duties.
Develop and Maintain Plan Documents
Prepare and regularly update plan documents, including the plan document, summary plan description (SPD), and any required disclosures, to reflect current regulations and plan provisions accurately.
Conduct Regular Compliance Reviews
Perform periodic reviews of plan operations and administrative procedures to identify and address compliance issues promptly. This may include reviewing plan documents, participant communications, payroll processes, and investment practices.
Perform Nondiscrimination Testing
Conduct annual nondiscrimination testing, including ADP/ACP testing (Actual Deferral Percentage/Actual Contribution Percentage), top-heavy testing, and coverage testing, to ensure that the plan does not disproportionately benefit highly compensated employees (HCEs) and meets participation requirements.
File Required Forms and Disclosures
Prepare and submit required forms and disclosures to regulatory agencies in a timely manner, such as Form 5500, Summary Annual Report (SAR), and participant fee disclosures (e.g., 404a-5 disclosures).
Monitor Plan Fees and Expenses
Review plan fees and expenses regularly to ensure they are reasonable and in compliance with ERISA’s fee disclosure requirements. Compare fees charged by service providers and investment options to industry benchmarks.
Document Compliance Efforts
Maintain thorough documentation of compliance activities, including meeting minutes, audit reports, testing results, and correspondence with service providers and regulatory agencies. Documentation should demonstrate prudent decision-making and adherence to fiduciary standards.
Provide Participant Education
Offer educational resources and communications to help plan participants understand their rights, benefits, and responsibilities under the plan. This may include investment education, retirement planning tools, and information about contribution limits and distribution options.
Respond to Participant Inquiries and Complaints
Review plan fees and expenses regularly to ensure they are reasonable and in compliance with ERISA’s fee disclosure requirements. Compare fees charged by service providers and investment options to industry benchmarks.
Engage with Service Providers
Regularly review the performance and compliance practices of plan service providers, such as record keepers, trustees, investment managers, and third-party administrators. Ensure that service agreements reflect the plan’s needs and comply with regulatory requirements.
Conduct Fiduciary Training
Provide training for plan fiduciaries and administrators on their roles, responsibilities, and legal obligations under ERISA. Ensure that fiduciaries understand their duties and act prudently in the best interests of plan participants.
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