1,200 401(k) Plan Sponsors Will Receive Compliance Questionnaires from the IRS

The IRS announced a new initiative in support of its continued compliance efforts directed at the retirement plan community. Beginning in mid-May, 1,200 sponsors of 401(k) plans will receive compliance questionnaires from the IRS requesting plan design and operations data ranging from plan demographics to eligibility, contribution and distribution features, as well as several “opinion” questions.

For those fortunate employers that do not receive a questionnaire package, this is an opportunity to use the questionnaire to review their 401(k) plans and to determine their level of compliance with the issues that the IRS deems to be important. The agency invariably will issue interim and/or final reports summarizing the responses to the questionnaire, and sponsors will be able to compare those findings to their own plans.