Archive for December, 2019

Participant Lawsuits Against 401(k) Plans

Wednesday, December 4th, 2019

Companies strive to do their best to avoid situations that could lead to participant lawsuits against 401(k) plans. Part of that is using prudent processes in the plan.

Since the inception of the Employee Retirement Income Security Act of 1974 (ERISA), the prudent person rule has provided a good rule of thumb. To paraphrase, it states that an appropriate decision is one that a prudent person, with similar skill and circumstances, would make. It does lack (more…)

December Checklist

Monday, December 2nd, 2019

  • Prepare to send year-end payroll and updated census data to the plan’s recordkeeper in January for year-end compliance testing (calendar-year plans).
  • Verify that participants who terminated during the second half of the year selected a distribution option for their account balance and returned the necessary
  • Review plan operations to determine if any ERISA or tax-qualification violations occurred during the year and if using an IRS or DOL self-correction program would be appropriate.

Consult your plan’s financial, legal, or tax advisor regarding these and other items that may apply to your plan.