Proper 401(k) plan administration is vital for both employers and employees, ensuring that retirement savings are protected and maximized. Plan administration extends beyond compliance; it directly affects the financial future of your employees. Accurate record-keeping is essential and inaccurate records can lead to discrepancies in employee accounts, creating mistrust and dissatisfaction. Furthermore, neglecting fiduciary duties — such as selecting appropriate investment options — can jeopardize your employees’ retirement savings.
Don’t fall victim to the most common mistakes:
- Failure to file Form 5500
- Late contribution deposits
- Improper plan loans or poorly administered withdrawals
- Failure to provide required notice on key changes
- Improper attention to contribution limits
- Failure to adjust for changes in market conditions
- Expensive fees and costly penalties
Learn more about what we can do with your 401(k) plan!
Stay in the know and eliminate the chances of missing out with regular plan performance benchmarking. When you work with Tax Solutions Consultants, you’ll gain valuable insights into avoiding these common pitfalls and ensure that your 401(k) plan is well-managed and beneficial for your employees.