Fixing Common Plan Mistakes
Common mistakes that happen in retirement plans, how to use the IRS’s correction programs to correct the mistake and how to reduce the probability of it happening again.
- Fix-It Guides - fix common mistakes in a 401(k), SEP, SIMPLE IRA, or 403(b) plan
- Employee Plans Compliance Resolution System (EPCRS) overview
- Self-Correction Program overview
- Voluntary Correction Program overview
- 403(b) Plans with Operational Failures
Available correction methods may depend on when the failure occurred.
- Correcting a failure to adopt a written 403(b) plan
What to do if the plan sponsor missed the December 31, 2009, deadline
- Not Correcting ADP/ACP Mistakes Timely
How to fix a 401(k) plan's failure to timely satisfy ADP or ACP tests.
- Failure to Implement the Plan’s Automatic Enrollment Provisions
How to fix a failure to begin deferrals from an eligible employee’s compensation as required under an automatic enrollment provision.
- Failure to Implement Employee Deferral Elections
How to fix a failure to implement an employee's election to defer amounts to a 401(k) plan.
- Excess Deferrals
How to fix the problem of excess deferrals.
- Failure to Limit Contributions for a Participant
How to fix a failure to limit contributions for a participant.
- Exclusion of Employees from Making Elective Contributions or After-Tax Employee Contributions
How to fix a failure to allow eligible employees to make elective or after-tax employee contributions.
Designated Roth Contributions
- Common Roth contribution mistakes
In the operation of a Roth feature, sometimes the employer doesn’t follow the employee’s election as to the type of elective deferral.
Failure to Timely Start Minimum Distributions
How to fix a failure to timely start minimum distributions.
Hardship Distributions in a 401(k) Plan
How to fix hardship distributions from a 401(k) plan that do not satisfy the plan provisions.
- Participant Loans in 401(k) Plans
How to fix problems associated with participant loans in 401(k) plans
- Plan Loan Failures and Deemed Distributions
How to fix the problems associated with plan loan failures and deemed distributions.
Safe Harbor 401(k) Plans
- Failure to Provide a Safe Harbor 401(k) Plan Notice
How to fix the problem of failure to provide a safe harbor 401(k) plan notice.
- Using a Plan Amendment for Correction in the Self-Correction Program
When can a plan amendment be used to correct a mistake in the operation of the plan under the Self-Correction Program?
SIMPLE IRA plans
- SIMPLE IRA Sponsor with a Related Business
How to fix related business problems found with SIMPLE IRA-based plans
- Failure to Obtain Spousal Consent
How to fix a failure to obtain spousal consent when a distribution is made to a participant in the form other than the required Qualified Joint and Survivor Annuity.
- Using EPCRS to Terminate an Orphan Plan
How to use EPCRS to terminate an orphan plan.
- Top-Heavy Errors in Defined Contribution Plans
How to fix top-heavy errors in defined contribution plans.
Vesting Errors in Defined Contribution Plans
How to fix vesting errors in defined contribution plans.