Compliance November 23, 2011

IRS Gives Update on 401(k) Questionnaire Project

November 23, 2011 (PLANSPONSOR.com) - Over 95% of the 1,200 plan sponsors contacted by the Internal Revenue Service Employee Plans Compliance Unit voluntarily completed the online 401(k) Compliance Check Questionnaire.
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The IRS initiated examinations on the plans of sponsors who didn’t answer the questionnaire and collected the questionnaire data during the examination (see IRS to Conduct Exams of Questionnaire Non-Responders). The agency will post an interim report soon to www.irs.gov/retirement. The final report will be completed by the end of FY 2012 and the IRS will announce when it’s posted on the website.  

According to the agency, the questionnaire data will be used to improve its web-based tools and guidance, including the Employee Plans Compliance Resolution System; enhance its compliance strategies; improve voluntary compliance through education and outreach efforts and, where appropriate, expand enforcement activities.  

The project was started in May 2010 (see IRS Provides 401(k) Questionnaire Details), and the survey sought plan information on: 

  • Demographics 
  • Participation 
  • Employer and employee contributions 
  • Top-heavy and nondiscrimination testing 
  • Distributions and plan loans 
  • Other plan operations 
  • Automatic contribution arrangements 
  • Designated Roth features 
  • IRS voluntary compliance and correction programs 
  • Plan administration 

 

More information on the project is at http://www.irs.gov/retirement/article/0,,id=223440,00.html.

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