Compliance Checklist For Retirement Plan Administration

This page starts with an overview of Retirement Plan compliance requirements, continues with a list of some common administrative mistakes, then concludes with a compliance checklist for your Retirement Plan to help your organization comply with the requirements under Retirement Plans so your organization can avoid common mistakes and lawsuits.

Key Retirement Plan Compliance Requirements

There are several types of retirement plans, such as a 401(k) and Defined Benefit Plans, that are designed to accumulate savings and investments for income after stopping work. These plans provide tax advantages that allow individuals to build a "nest egg" and ensure financial security during their post-work years.

However, like with most things, there are rules and requirements for putting monies into - and taking monies out of - of a retirement plan. These include:

• Having a plan document
• Establishing and enforcing eligibility criterias
• Employee and employee contributions
• Implementing a vesting schedule
• Non-Discrimination Testing
• Reporting and Disclosure
• Fiduciary Responsibilities

Common Retirement Plan Administrative Errors

• Plan Documentation Errors
• Eligibility Errors
• Contribution Errors
• Investment Errors
• Vesting Errors
• Compliance Errors
• Fiduciary Duty Errors
• Communication Errors

More Information About Retirement Plan Administration: Definitions |Blog | FAQs | Retirement Plan Training Courses

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Compliance Checklist For Retirement Plans

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The information below is a draft checklist for retirement plan compliance. Feel free to add or delete as needed to meet your organization's needs.

Plan Setup & Documentation
Written plan document exists and is current
Plan document reflects actual operations
Summary Plan Description (SPD) created
SPD distributed to participants within required timeframe
Plan amendments adopted timely

Fiduciary Responsibilities (ERISA Core Requirement)
Fiduciaries identified and documented
Fiduciaries understand duties
Decisions documented (investment, vendor selection)
Conflicts of interest avoided

Employee Eligibility & Enrollment
Eligibility rules applied consistently
Employees allowed to enroll when eligible
Auto-enrollment (if applicable) administered correctly
Enrollment records maintained

Contributions & Funding
Employee deferrals deposited timely (as soon as administratively feasible)
Employer contributions made per plan terms
Contribution limits monitored:
Catch-up contributions handled correctly

Vesting & Participant Accounts
Vesting schedule applied correctly
Participant account balances tracked accurately
Forfeitures handled per plan document

Nondiscrimination Testing
Annual testing completed
Corrections made timely if tests fail
Safe harbor provisions applied (if applicable)

Investment Oversight
Investment options reviewed regularly
Fees evaluated for reasonableness
Investment policy statement (IPS) maintained
Participant disclosures provided

Participant Disclosures & Notices
Required notices distributed
Notices delivered timely and documented
Participants informed of rights and options

Loans & Distributions
Loans administered per plan terms
Hardship withdrawals comply with rules
Required Minimum Distributions (RMDs) processed timely
Distributions reported correctly (tax forms issued)

Form 5500 Filing (Annual Requirements)
Form 5500 filed annually
Filing completed by deadline (with extensions if needed)
Supporting schedules completed
Filing retained for records

Audit Requirements
Plan audit conducted (if required based on size)
Auditor is independent and qualified
Audit findings addressed

Recordkeeping & Documentation
Maintain records for:

• Contributions
• Distributions
• Participant elections

Retain records for at least seven years
Documentation audit-ready

Vendor & Service Provider Oversight
Third-party administrators (TPAs) monitored
Fee disclosures reviewed
Service agreements documented
Performance evaluated regularly

Corrections & Compliance Programs
Errors identified promptly
Corrections made using IRS/DOL programs
Documentation of corrections maintained

Cybersecurity & Data Protection
Participant data protected
Access controls implemented
Vendors follow cybersecurity best practices
Incident response plan in place

More Information About Retirement Plan Administration: Definitions |Blog | FAQs | Retirement Plan Training Courses

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