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EP Compliance Trends and Tips

Trends are recurring plan mistakes that IRS Employee Plans sees in audits, voluntary compliance submissions, determination letter applications and annual return filings. These trends are categorized, below, by plan type, issue, compliance activities, and processing of applications/returns.

Tips on how to find, fix, and avoid common mistakes are available for many of the trends. Other tips are available such as how to prepare for an efficient audit.

It is important to note that the earlier you detect and correct a plan mistake, the cheaper it is to fix. It also precludes the mistake from affecting other areas of the plan. For instance, improperly excluding an employee from the plan for many years could lead to this mistake affecting not only the plan participant, but discrimination testing, top-heavy testing and other plan operations.

Additional Assistance - Have You Had Your Retirement Plan Check-Up?

"Check-Ups" are available to help business owners who sponsor retirement plans develop a better understanding of the requirements for their plans. After reviewing the plan and completing the appropriate check-up, you may find an error in your plan's operation. You may want to correct the error using one of the IRS correction programs. "Check-Ups" involve a three-step approach with the goal of increasing awareness by business owners of the need to operate their retirement plans properly, pointing them to further information and services.

Additional Assistance - The Fix Is In - Common Plan Mistakes

Page Last Reviewed or Updated: 15-Apr-2015