Retirement plans are an important benefit for employers to offer as part of an incentive package.
Many offer such plans because they provide an important method for employees to save for retirement tax deferred. While for profit companies leverage the popular 401k plan, non-profit organizations such as schools, government agencies and others are required to use 403b plans. Like 401k plans there are many rules and regulations which must be followed and mandated by both the Internal Revenue Service (IRS) and Department of Labor (DOL) including covering topics from exceeding deferral limits to following plan documents. Unfortunately, errors within plans are possible and these errors can leave a plan non-compliant and result in penalties and more if not addressed. To help clients, prospects and others understand these mistakes and how to correct them, Hanson & Co has provided a summary below.
There are several common plan administration errors that 403b plan sponsors often make. While processes and people work to ensure no errors are committed on occasion mistakes happen. It’s important to understand the corrective steps and processes available to bring your plan into compliance. If you have questions about the information outlined above or would like assistance with your plan audit, Hanson & Co can help. For additional information please call us at (303) 388-1010, or click here to contact us. We look forward to speaking with you soon.