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401(K) Questionnaire Being Sent to 1,200 Random Employers
Monday, 28 June 2010 16:14

By Terry Reynolds, QKA Administrator

During the week of May 17th, the IRS Employee Plans Compliance Unit (EPCU) will randomly send a letter and instructions to approximately 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 EPCU maximize its guidance and enforcement efforts while minimizing the burden to compliant plan sponsors.  Plan sponsors need to be aware that this Questionnaire is not being sent because something has been done wrong on a past Form 5500; it is a random mailing to obtain compliance information about your plan.

The same Questionnaire will apply to all plan sponsors; however, some questions may only apply to plans with particular features.  While the IRS is requesting this information on a “volunteer basis”, failure to respond or provide complete information will result in an audit of the plan.

Responses to the Questionnaire will be sent to the IRS via the Internet, with each recipient receiving a personal identification number (PIN) to use when completing the Questionnaire online.  It is our understanding that you will have 90 days to complete the Questionnaire.  You can expect that answering some questions incorrectly will result in prompt follow up by the IRS.  Plan sponsors should seriously consider utilizing their plan’s third-party administration firm for help in completing this Questionnaire.

The Questionnaire is approximately 46 pages long and has both technical and subjective questions.  You will not be able to just look at the plan’s Form 5500 to answer these questions; they will require research.  Questions will apply to the 2006, 2007 and 2008 plan years.

 If you have any questions, please feel free to contact Terry Reynolds, QKA at Cordell, Neher & Company, PLLC (509-663-1661).

 
 

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