401(k) Guide

Welcome to the 401(k) Plan Fix-It Guide. We often hear many questions and see many mistakes when it comes to 401(k) plans and wanted to give you a monthly update with the most common mistakes and solutions, along with some fun BBQ and drink recipes to brighten up your year.

January 2017

Mistake: You haven’t updated your plan document within the past few years to reflect recent law changes. What’s the fix?

February 2017

Mistake: You didn’t base the plan operations on the terms of the plan document. Failure to follow plan terms is a very common mistake. What’s the fix?

March 2017

Mistake: You didn’t use the plan definition of compensation correctly for all deferrals and allocations. What’s the fix?

April 2017

Mistake: Employer matching contributions weren’t made to all appropriate employees. What’s the fix?

May 2017

Mistake: The plan failed the 401(k) ADP and ACP nondiscrimination tests. What’s the fix?

June 2017

Mistake: Eligible employees weren’t given the opportunity to make an elective deferral (exclusion of eligible employees). What’s the fix?

July 2017

Mistake: You didn’t base the plan operations on the terms of the plan document. Failure to follow plan terms is a very common mistake. What’s the fix?

August 2017

Mistake: You haven’t timely deposited employee elective deferrals. What’s the fix?

September 2017

Mistake: Participant loans don’t conform to the requirements of the plan document and IRC Section 72(p). What’s the fix?

October 2017

Mistake: Hardship distributions weren’t made properly. What’s the fix?