Back in May of 2010 the IRS sent letters to 1,200 401(k) plan sponsors instructing them to complete the 401(k) Questionnaireonline by visiting a secure website and using a PIN number provided in the cover letter. Their stated intention is to:
- better understand 401(k) plan compliance issues,
- determine how their tools and voluntary compliance programs are working, and
- identify participant awareness and plan sponsor compliance issues
The IRS wants to “encourage all plan sponsors to use the Questionnaire as an internal control tool to review your plan and determine if it is in compliance.
They also announced that “Non-reponders” will be subjected to a full-scope examination to provide the data needed for their 401(k) market segment analysis.
If your plan is a 401(k) I encourage you to review the questionnaire and highlight the areas of uncertainty that should be addressed. If you need assistance please feel free to contact me.
Castle Rock Investment Company, formed in 2006, is an independent woman-owned SEC-registered investment adviser located in Castle Rock, Colorado. We specialize in individual financial plans and qualified service plans.