401(k) Compliance & Administration

We understand the importance of compliance with IRS and DOL regulations – your plan’s tax-qualified status is dependent on it. Our clients count on us to keep them on track with timely notifications of their requirements, and the fastest possible turn-around of the reports and filings they need. Our annual work consists of a broad scope of services, from routine compliance and reporting to consultations based on each client’s current business situation and/or changing objectives.

Basic Annual Administration

Pollard’s routine annual administrative services include:

  • Collection (via electronic medium) and maintenance of employee census data
  • Determination of participant eligibility status for employer contributions
  • Computation of participant service to determine vesting credits
  • Calculation, allocation, and reconciliation of employee and employer contributions
  • Processing and approval of distributions, hardship withdrawals, and other in-service withdrawals in coordination with investment provider
  • Participant loan setup, including determination of available loan limit, preparation of promissory note and amortization schedule, and maintenance for the life of the loan

Compliance Testing

All qualified retirement plans must show annual documentation of compliance with coverage and non-discrimination rules. Pollard’s annual compliance services include:

  • Determination of Highly Compensated Employees
  • Determination of Key Employees
  • All annual Compliance tests:§410(b) testing for coverage and participation
    • §401(a) testing for non-discrimination
    • §401(k) and (m) testing (ADP/ACP) for salary deferrals and employer matching contributions
    • §404 testing for aggregate deduction limits
    • §415 testing for individual participant allocation limits (employee, employer, and forfeiture allocations)
    • §416 testing for Top Heavy status
  • Identification of alternatives and instructions for correction of compliance testing failures
  • Pre year-end testing for assistance with year-end tax planning, if requested

Government Reporting

Plan sponsors are required to file an annual report/return, known as the Form 5500, with the Department of Labor (DOL). The Form 5500 discloses information about the plan and its operations to the DOL, the plan’s participants, and the public. Pollard’s Government Reporting services include:

  • Preparation of “signature ready” Form 5500 and applicable attachments
  • Completion and filing of Form 5588 for filing extension if needed (extends Form 5500 deadline by 2½ months to 9½ months after plan year end)
  • Actuarial certification of Schedule SB for defined benefit plans
  • Preparation and filling of Form 8955-SSA
  • Preparation of Summary Annual Report (required to be distributed annually to all plan participants)

Under the electronic filing requirements, plan sponsors must obtain e-filing credentials and follow specific EFAST2 filing procedures to properly file their Form 5500 and required attachments, unless the plan sponsor authorizes Pollard to file on their behalf.

Plan Document Maintenance

Pollard’s annual plan document services include:

  • Automatic adoption of all required compliance Amendments for adopting employers of our Pre-Approved Plan documents to ensure continued plan qualification based on changing legislative and/or regulatory requirements.

Basic Consulting

Pollard’s basic consulting services include:

  • Notification of legislative and regulatory changes which may have an impact on the Plan
  • Quarterly newsletter for plan sponsors providing information on a current topic of interest
  • Ongoing consultation on the operations of the Plan
  • Consultations on the continued appropriateness of Plan provisions in the context of the employer’s current business situation and/or changing objectives

Additional Administrative Services

Pollard will perform additional administrative services that fall out of the scope of our routine annual work, including:

  • Review and approval of Qualified Domestic Relations Orders (QDROs) for payment to an alternate payee under marital divorce procedures
  • Preparation of voluntary plan amendments to incorporate plan design changes (compliance amendments are automatically provided)
  • Assistance with correction procedures for compliance related issues (e.g., operational failures, late or missed plan amendments, late or missed contribution deposits, etc.)
  • Preparation of Form 5330 for payment of penalty and excise taxes, as may be required for prohibited transactions, late contribution deposits, etc.
  • Assistance with IRS or DOL Audits by an on-staff Enrolled Retirement Plan Agent (ERPA) who can represent the Plan Sponsor before the IRS
  • Plan termination processing, including preparation of participant notices and IRS filings, and participant distribution processing

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