A recent article in Employee Benefit News addresses some of the Plan errors and problems that would catch the attention of the DOL
- Respond promptly to any employee questions or complaints. According to the article, the most frequent cause for DOL attention is employee complaints received by the DOL.
- Make sure your plan is clearly explained to all employees to avoid complaints
- Address trouble areas of the Plan before the DOL decides to audit
- File your 5500 correctly- this is the second most likely cause for your plan to receive the attention of a DOL audit
Common errors encountered filing the 5500 for a 401(k) plan include:
- Not attaching all required schedules
- Failing to answer multi-part questions
- Failing to include all eligible participants in the participant count
Does your plan have procedures in place to address participant questions and complaints?