Benefits

IRS to Distribute 401(k) Plan Survey Questionnaires

By Staff Report

May. 19, 2010

The Internal Revenue Service soon will be sending out questionnaires to about 1,200 sponsors of 401(k) plans as part of a project to provide the agency with information on a wide range of issues.


Among the 69 questions the IRS is asking are:

  • What was the average contribution—as a percentage of salary—made by highly and non-highly compensated employees in 2006, 2007 and 2008?
  • Does the plan permit participants to take loans?
  • How frequently are participants required to make loan repayments?
  • For what situations does the plan permit hardship distributions
  • How often can participants change the percentage of salary contributed to the plan?
  • Does the plan have an automatic contribution feature?

The IRS says it is conducting the survey to “determine potential compliance issues” as well as to help it decide where to focus enforcement efforts.


A previous IRS study found that 401(k) plans are the “most non-compliant plan type in the retirement plan universe.” Since 401(k) plans have become the dominant employment-based retirement plan, “it is important to the future of the private retirement system these plans maintain the highest level of compliance possible,” the IRS said in a preface to the questionnaire.


 

Filed by Jerry Geisel of Business Insurance, a sister publication of Workforce Management. To comment, e-mail editors@workforce.com.

 

Stay informed and connected. Get human resources news and HR features via Workforce Management’s Twitter feed or RSS feeds for mobile devices and news readers.

About Workforce.com

blog workforce

We build robust scheduling & attendance software for businesses with 500+ frontline workers. With custom BI reporting and demand-driven scheduling, we help our customers reduce labor spend and increase profitability across their business. It's as simple as that.

Book a call
See the software

Related Articles

workforce blog

Benefits

EEOC says that employers legally can offer incentives to employees to get vaccinated in almost all instances

If you’re an employer looking to get as many of your employees vaccinated as possible, you can rest eas...

ADA, CDC, COVID-19, EEOC, GINA, pandemic, vaccinated

workforce blog

Benefits

Fixing some common misconceptions about HIPAA

Ever since the CDC amended its COVID-19 guidance to say that the fully vaccinated no longer need to wea...

COVID-19, health care, HIPAA, human resources, wellness

workforce blog

Benefits

We are in the midst of a public mental health crisis; how employers can help

Do not ignore these issues or your employees who are living with them. Mental health illnesses are no d...

ADA, benefits, Coronavirus, FMLA, mental health, paid time off