Retirement plans require a continuous on-going effort to monitor compliance with the Employee Retirement Income Security Act of 1974 (ERISA), the Internal Revenue Code, and other laws and regulations. In addition, proper plan compliance administration demands an in-depth knowledge of the many actions required to keep that plan in compliance and also demands maintaining a preemptory overview of the plan's status to ensure that it remains in compliance at all times. Not having that expertise working for your plan could result in your plan not being properly administered, failing its compliance testing, and exposing your plan to the potential loss of its favorable tax status.
Katz, Sapper & Miller will prepare all the complex annual IRS reporting and compliance testing requirements and will keep the Plan Sponsor and Trustees apprised of changes in law that may affect the Plan. Our annual testing involves monitoring plans for compliance with non-discrimination rules, including ADP and ACP testing, and minimum coverage testing under IRC 410(b). We will monitor your Plan's compliance with contribution and benefit limitations under IRC 415 and 402(g), top-heavy status under IRC 416; and where required, perform complex average benefits percentage testing under 410(b) and general testing under 401(a)(4).
Plans that fail to conform fully with these regulations are exposed to the risk of stiff governmental penalties and adverse tax consequences.
As your plan's administrator, Katz, Sapper & Miller will keep you fully apprised of all regulatory updates and provide the following retirement plan compliance administration:
- Determination of Highly Compensated Employees (HCE's) and Key Employees
- ADP / ACP Non-Discrimination Testing - Section 401(k)(3) and 401(m)(2)
- Maximum Annual 401(k) Salary Deferral Limit Testing Section 402(g)
- Maximum Annual Additions Test - Section 415
- Compensation Testing - Section 414(s)
- Top Heavy Test - Section 416(c)
- Maximum Deductible Employer Contribution Testing - Section 404
- Minimum Coverage Testing - Section 410(b)
- 701/2 Required Minimum Distribution calculations
- Loan and Hardship Withdrawal Maximums
- Vesting Calculations
- Employer Profit Sharing, Safe Harbor, and/or Matching Contribution Calculations
- Age-Weighted / New Comparability Contribution Calculations
- Forfeiture Accounting
- IRS Annual Return - Form 5500 and required Schedules (signature-ready)
- Summary Annual Report (SAR)
- Tax Reporting Preparation - Forms 945/1096/1099-R
- Plan Document Requirements including: restatements, amendments, resolutions, SPDs, SMMs, IRS submission, 204(h) Notices, and other notices as needed to comply with IRS and ERISA rules and regulations.
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