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IRS Updates its 401(k) Plan Fix-It Guide

Got a 401(k) problem? The IRS has an updated “fix it” guide to help. The guide outlines how to find the mistake, as well as how to fix it and avoid it in the future. Here are some of the problems (and solutions) outlined in the updated guide:
• plan document hasn’t been updated in a few years
• failure to run the plan in accordance with the terms of the plan document
• failure to use the plan definition of compensation correctly for all deferrals and allocation
• employer contributions weren’t made to all appropriate employees
• the plan failed the 401(k) ADP and ACP nondiscrimination tests
• eligible employees weren’t given the opportunity to make an elective deferral
• failure to adhere to the 402(g) limits
• failure to deposit employee contributions on a timely basis
• failure to make or administer plan loans in accordance with legal requirements or the plan document
• hardship distributions weren’t made properly
• required minimum contributions weren’t made to a top-heavy plan
• haven’t filed a Form 5500 this year.

 The 401(k) Plan Fix-It Guide is online here

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