Admit it. Administering your company’s retirement plan is probably one aspect of the job you wish you could leave behind. But it’s an important one.
A retirement plan is a legally binding document that gives enforceable rights to plan participants. Failing to follow plan terms can be a headache—and costly!
Fortunately, a few easy steps can help keep your retirement plan on track and in compliance.
Get plan documents in order
Be sure you have all of your plan documents … and the amendments! Then read and understand them. Knowing what your plan document says is essential, but can be trickier than it sounds.
For example, many plans actually consist of two documents:
- The adoption agreement contains all the administrative choices that are unique to your plan: who is eligible to participate, the type and amount of contributions, etc.
- The basic plan document contains all the boilerplate language that dictates how to administer tho...(register to read more)