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Here’s what the check-up includes:
Retirement Plan Checklist Tips, Publications and Forms for Need to Make a Correction?
the Operation of Your Plan We Can Help.
Retirement Plan Checklists are available in two formats. You and your employees expect a retirement plan to Mistakes don’t go away by themselves.
deliver what’s promised.
■ Single page version, available in print or online— For a The IRS has helpful correction programs
quick review to see if you meet some basic requirements in Use these tips and resources to help ensure that the plan that are structured to provide financial
operating your business’s retirement plan, get the one-page you and your employees count on is in good running order. incentives for finding and correcting mis- Common
Mistakes
takes earlier rather than later. In fact, many
IRS Checklist for your specific plan. The checklist does not ■ Watch for law changes. Keep the plan up-to-date with
mistakes Reviewing the
cover all plan requirements, so you should not use it as a com- the law. Ask your tax advisor “when and what” to change in can be corrected easily, without Checklist questions
penalty
plete plan review. It is, however, an easy way to start your plan. Those who specialize in retirement and without notifying the IRS. for your plan could
your plan check-up. programs may provide auditing and plan review services. The IRS system of retirement plan help you avoid
correction programs, the Employee Plans common errors in
Sample of Checklist questions: ■ Perform periodic reviews of your plan. Errors in a plan the operation of
Compliance Resolution System (EPCRS),
1. Has your plan document been updated within the past Yes No brought on by changes in your work force and its salary defer- your retirement
helps business owners protect participant
few years to reflect recent law changes? ■ ■ ral patterns are easier and cheaper to fix when they plan. The IRS
benefits and keep their plans within the law.
Yes No are small and have not been allowed to continue over a frequently finds
2. Are the plan’s operations based on the terms of the plan EPCRS includes:
document? ■ ■ long period of time. Changes in your business may produce the following mis-
unexpected changes in your plan’s operation. • With this takes in retirement
Self-Correction Program (SCP)—
plan examinations:
3. Are all eligible employees participating Yes No program, you can find and correct a mis-
in the plan? ■ ■ ■ Get an independent reviewer to check your plan. An inde- take without contacting the IRS. You can fix ■ not covering the
pendent reviewer may see something that has been overlooked insignificant operational failures at any proper employees
• Answering “yes” to all checklist questions may indicate that by others, which could save you and your employees money, time, even if the plan is under examination. ■ not giving
your plan is in good shape. You should share your answered and may improve benefits. In most cases, you must fix significant oper- employees required
checklist with your tax advisor to verify all is well. ■ Subscribe to the Retirement News for Employers newsletter. ational failures by the end of the second information
• Answering “no” to any of the checklist questions lets you This quarterly IRS publication provides plain-language year following the plan year in which the ■ not depositing
know on the spot that you may have a mistake in the opera- information about retirement plans. To subscribe, go to mistake occurred. employee deferrals
timely
tion of your plan. Help is available. www.irs.gov/retirement and select Newsletters. Voluntary Correction Program (VCP)—
• ■ not depositing
■ Electronic version with links to expanded explanations— or You may correct your plan’s mistakes
The following free materials are available at www.irs.gov, employer contribu-
An electronic version of this Checklist, with links to the plan's with help from the IRS. A fee may apply. tions timely
can be ordered by calling the IRS at (800) 829-3676:
"IRS Fix-It Guide" for tips on how to find, fix and avoid each Audit Closing Agreement Program
Publication 560 Retirement Plans for Small Business • ■ not following
potential mistake, is available through www.irs.gov/retirement. (SEP, SIMPLE, and Qualified Plans) (Audit CAP)— If the IRS examines your plan the terms of the
Select Fix-It Guides, Common Problems, Real Solutions. Publication 3998 Choosing a Retirement Solution and finds an error, you can still plan document
for Your Small Business correct the problem. You should be ■ not limiting
Order free Checklists at (800) 829-3676, or download them aware that the fee will be larger than if employee defer-
Publication 4222 401(k) Plans for Small Businesses
from the Internet at www.irs.gov/retirement: you had found and fixed the error
Publication 4333 SEP Retirement Plans for Small Businesses rals and employer
Publication 4284 SIMPLE IRA Plan Checklist yourself, or brought it in voluntarily. contributions to
Publication 4334 SIMPLE IRA Plans for Small Businesses the proper
Publication 4285 SEP Checklist
Publication 4336 SARSEP for Small Businesses Learn about IRS correction programs at maximum limits
Publication 4286 SARSEP Checklist
Publication 4483 Tax-Sheltered Annuity Plans for Sponsor www.irs.gov/retirement. See Correcting Plan
Publication 4531 401(k) Plan Checklist Errors.
Publication 4484 Choose a Retirement Plan for Employees
Publication 4546 403(b) Plan Checklist of Tax Exempt and Government Entities
Note: The Checklist is for sponsor/owner’s use. It is not to be filed with the IRS.
Use of the Checklist is strictly voluntary.
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