Did you receive a 401(k) plan questionnaire from the IRS recently? If so, you’re now a part of a new IRS compliance initiative to determine the extent to which employers are complying with 401(k) rules, correcting errors and utilizing IRS compliance tools. The questionnaires were sent out to a random selection of employers, beginning in March (IRS Employee Plans News, Winter 2010). While the questionnaire is not the same as an IRS audit, an employer’s responses could lead to follow-up questions from the IRS. There is no word from the IRS on whether this could lead to a full-blown audit of the plan. If you receive a questionnaire, contact your 401(k) plan advisor.
This website presents general information in nontechnical language. This information is not legal advice. Before applying this information to a specific management decision, consult Vigilant or legal counsel.