October 15, 2018
Authored by: Meredith Jacobowitz and Lisa Van Fleet
Mistakes are all too easy to make, but fortunately, they are also easy to prevent! This week, we are discussing the five most common compliance mistakes made by 401(k) plan administrators and fiduciaries, the potential liability associated with such mistakes, and steps you can take to avoid making them yourself. Each day we will discuss a new compliance mistake, so stay tuned.
Failure to Timely Update Plan Document
Statutes and regulations establishing qualification requirements change relatively frequently. Plans must be modified to conform to the requirements as required by each statute and regulation.
Potential liability will differ based on the statute or regulation in question. In some circumstances, failure to timely adopt legislative and/or regulatory changes may result in disqualification of the plan.
Most recently, the Department of Labor updated the regulation governing the process for disability claims. The new regulations provide participants with enhanced rights,