In May 2010, the Service sent out letters and instructions to a random sample of 1,200 employers that sponsor 401(k) plans, asking them to complete a “401(k) Compliance Check Questionnaire.” The Service said that the information gathered would provide a comprehensive view of 401(k) plans, and would help the Service maximize its resources for education, outreach, guidance, and enforcement efforts while minimizing the burden to compliant plan sponsors. Recipients of the questionnaires were given 90 days in which to respond, although the Service was liberal in granting extensions of time for the responses. The final extension of time expired in November 2010.
According to remarks of Monika Templeman, Director, Employee Plans Examinations, published in the Winter 2011 edition of the Service’s online newsletter, “Retirement News for Employers,” plan sponsors that failed to return the 401(k) questionnaire will have their 401(k) plans subjected to a full-scope examination.
Please click here to read more about the IRS's plan to examine 401(k) plans that failed to submit questionnaires.
Do you have questions about your 401(k) plan? For more information on employee benefit plan audits, please leave a comment below, or contact Dani Gisondo at 440-449-6800.
Information courtesy of BDO.