The days of hiring an outside consultant to administer your benefit plan while you go about your business are gone. It is your responsibility as the plan sponsor to be aware of possible areas of risk for the plan, and to periodically assess the status of those areas. Not doing so could put your tax-qualified status in jeopardy.
Areas to focus on include:
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- Recent law changes: Is your plan documentation and operation up-to-date?
- Your plan document: Does it reflect current plan operations?
- Compliance testing: Has all required testing been administered?
- Deferrals and loan repayments: Have they been deposited in a timely fashion?
- Form 5500: Has it been filed and has the Summary Annual Report been distributed to all plan participants?
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While you may still want to use the services of a third-party administrator, you also must oversee some basic aspects of the plan management to ensure you are operating well within the parameters of legal, compliance and fiduciary guidelines.
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Contact MCB’s Employee Benefit Plan Audit Practice Leaders Greg Askey or Charles Deppe at 703-218-3600 or email information@mcb-cpa.com with your benefit plan questions or to request a proposal for your next review or audit.