The following is a brief summary of the pertinent retirement plan administrative services we provide for our clients:
Employee Census Data
Receive complete employee census and payroll information each pay period for all employees. We will process the employee data, run edit checks, and if necessary, provide edit reports for you to review.
401(k) and 401(m) Discrimination Testing
Complete 401(k) (ADP)-discrimination testing (for pre-tax & Roth salary deferrals) and 401(m) (ACP)-discrimination testing for employer matching contributions, if applicable.
401(a)(4) Discrimination Testing
Complete discrimination testing for benefits, rights, and features.
IRS Section 404(f) – Maximum Tax Deduction
Determine that the total employer contributions (if any) to the retirement plan are within the deductible limits of Internal Revenue Code Section 404.
IRS Section 410(b) – Coverage
Review participation levels to ensure compliance with Internal Revenue Code Section 410(b) minimum coverage requirements.
IRS Section 416 – Top-Heavy
Complete top-heavy testing in accordance with Internal Revenue Code Section 416.
IRS Section 402(g) – Maximum 401(k) Limit
Monitor compliance with Section 402(g) limits on maximum annual deferral contributions for individual participants.
IRS Section 414(v) – Catch-up Contributions
Determine and account for catch-up contributions for participants having attained age 50 on or before the end of the year.
IRS Section 415 – Combined Total Contribution Limit
Monitor compliance with Internal Revenue Code Section 415 limits on combined total contributions for individual participants.
Track Money Sources
Separately track and account for various contribution sources (ex. 401(k), matching, and rollover). Track cost basis where required.
Plan Design
Confirm that plan administrative practices follow and are consistent with plan documentation. Identify differences and resolve either through amending documentation or changing administrative practice.
Plan Governance
Identify compliance weak points and provide best practices guidance for addressing them.
Online Access
Plan sponsor has web-based access to plan and participant level information for inquiry, reporting, audit and transactions.
Benefit Payments (terminated employee, hardship distributions, QDROs, etc.)
Process forms, compute amounts payable and provide information for Forms 1099-R and 1096.
Administrative Report
Prepare an annual administrative report to reflect compliance testing results, individual account record changes, current plan accounting and summary information, and to discuss any action required to be taken to bring the plan up to date.
Government Filings
Complete IRS Form 5500 (with attachments) and the Summary Annual Report.