INDUSTRY UPDATES

May 18, 2010 - 401(k) Questionnaire Coming to 1,200 Employers

During the week of May 17th, IRS Employee Plans Compliance Unit (EPCU) will send a letter and instructions to 1,200 employers sponsoring 401(k) plans asking them to complete the 401(k) Compliance Check Questionnaire. The information gathered from the Questionnaire will provide a comprehensive view of 401(k) plans and will help EP maximize its resources for education, outreach, guidance and enforcement efforts while minimizing the burden to compliant plan sponsors.

EPCU will use a secure website to collect responses on the following topics:

• Demographics
• Participation
• Employer and employee contributions
• Top-heavy and nondiscrimination testing
• Distributions and plan loans
• Other plan operations
• Automatic contribution arrangements
• Designated Roth features
• IRS voluntary compliance and correction programs
• Plan administration

All plan sponsors will complete the same Questionnaire; however, some questions may only apply to plans with particular features. Failure to respond or provide complete information will result in further action or examination of the plan.

The Questionnaire was developed because of the critical role 401(k) plans play in our private retirement system. There are nearly half a million 401(k) plans in America covering over 50 million participants.

See the EPCU Web page for more information on the Questionnaire, which is the featured project on the page, or click here.

March 22, 2010  The Senate version of the national health care reform bill has passed both houses and has been sent to the President for his signature. He is expected to sign the bill shortly. The Senate must now vote on the House proposed changes. If the Senate approves the House changes without any further amendments, these changes would then become law. If there are amendments or other changes in the Sentate, it must go back to the House for final approval. It is also possible that there will be opposition bills and appeals filed within the next couple of days to oppose the bill and possibly delay it's passing.