Each Monday 401kBasics posts a new tip as a part of our series “Plan Sponsor Quick Tips”. This series is designed to assist plan sponsors in filling their fiduciary role and running their retirement plan efficiently. Your feedback or suggestions on future articles is welcome.
If you have a pre-approved plan and adopted it as your employees’ retirement plan then you are obligated to keep the plan in compliance with all legal requirements. Below are tips to help you with this responsibility:
- Service Agreement – Make sure you understand the agreement as it show your responsibilities along with those of your pre-approved sponsor.
- Adoption Agreement – This agreement outlines your plan choices and you must operate your plan in accordance with its terms.
- Communication – Pay close attention to all communications from your pre-approved plan sponsor and administrator.
- Payroll – Your payroll department should be aware of your plan terms.
- Plan review – It is recommended that you review your plan regularly to make sure that you are in compliance with the law and that it still right for your business.
There are many facets to employer obligations for pre-approved plans but the list above should give you a start. For more information please contact your service provider
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