Posted in: Best practices, Fringe benefits, In this week's e-newsletter, Latest news & views, Tax compliance
Don’t say we didn’t warn you: IRS has a new compliance issue it’s investigating, and it may have questions for you. The Service is about to start surveying companies, to find out how widespread compliance issues are within 401(k) plans. The areas it has its eyes on are: non discrimination rules, late deposits of employee contributions, allowing hardship withdrawals to ineligible employees, etc.
If IRS finds problems/misinformation is common enough, you can expect increased audits and enforcement in this area.