Record Keeping for Retirement Plans

Best Practices while Ensuring Compliance

‍

Today we want to bring to your attention the importance of meticulous record-keeping for retirement plan procedures.

In early 2021 the Department of Labor spotlight effective communication with 401(k) participants, spurred by over a trillion dollars in unclaimed accounts. The DOL emphasized the accountability of plan sponsors and administrators, shifting the onus from participants to plan providers for relaying crucial retirement asset information.

Two key responsibilities emerged for plan sponsors: Guaranteeing communication is received by participants and outlining a comprehensive process to ensure information reach, particularly for active and terminated participants.

Thus, it's crucial to systematically document the following: A thorough notice-sending procedure. An explicit process to handle missing participants. and a Regular execution of these procedures.

The DOL hasn't prescribed set procedures, offering flexibility for each plan to devise their systems. Consistent execution, however, is essential. Should the DOL, IRS, or a litigation attorney investigate, policy and proof of execution may be required.

At Plan Notice, we take on the responsibility of sending participant notices and accept all associated liabilities in case of a D-oh-L audit. Our role includes process development, system creation, and meticulous audit trail documentation, ensuring correct notice distribution to all participants.

For more information around record keeping for retirement plans, contact us today.

‍