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Top 10 401k Compliance Mistakes

Top 10 401k Compliance Mistakes

In this article about 401k plan audits, Heidi LaMarca who heads up the employee benefit plans practice at the Atlanta-based CPA firm Windham Brannon sums up the types of errors seen in 401k plan audits.  Based on recent DOL communications and notices, we also know that these are some the things they are looking at.

  1. Late or erratic payment of employee deferrals
  2. Errors in calculating employee contributions
  3. Misunderstanding of the vesting period
  4. Disregard for break-in-service rules
  5. Improper handling of forfeiture accounts
  6. Incorrect tax withholdings on distribution
  7. Mistakes on profit-sharing contributions
  8. Mishandling employee requests
  9. Disconnects on service provider contracts
  10. Errors in eligibility determination


There is more detail on each of these items in the article Top 10 401(k) compliance mistakes auditors catch.

If you are having issues with any of these items, perhaps we should talk.  Our 401k plan approach here at NWPS ensures that our clients don’t have these kinds of issues and problems.