Keeping Your Qualified Retirement Plan In Compliance

Remember that you are responsible for compliance for your qualified retirement plan. This includes keeping the plan document current, determining eligibility to participate, making distributions, submitting employee contributions timely, discrimination testing, etc. These are complex issues and you should be using an expert to assist you. Usually the broker/dealer or fund manager is your plan provider and performs some or all of the administrative functions. We do not perform these functions in the tax preparation process. If you need assistance with compliance or have questions, contact your broker/dealer. If they cannot assist you, we will be glad to help you find an employee benefits expert. It is critical that you make sure you are in compliance as the IRS is stepping up enforcement in this area and the penalties for noncompliance can be substantial, including causing the entire retirement balance to be immediately taxable. If your plan has not been updated in the last 3 years, you may not be in compliance and should contact your plan provider.