Few would disagree about the benefit of receiving annual check-ups to promote good health and diagnose problems early when they are typically easier to fix. Your retirement plan is no exception. Don’t underestimate the importance of reviewing your retirement plan on an annual basis to identify existing or potential issues that, if neglected, may result in compliance problems or negatively impact plan participants.
Determining whether your retirement plan is being properly administered can be a critical element to reducing future plan costs and administrative headaches.
The Internal Revenue Service (IRS) stresses the importance of periodic plan check-ups and the value of regular care to keep your plan operating properly. Plans need to remain current, adapting to changes in laws and your business itself. Law changes can impact compliance or even provide options that were not available at the time your plan was implemented. These changes can have a great impact on your participants. Over time, your business may change and the goals you had in place when developing your plan may no longer be accurate. People leave, new hires come in, businesses grow and contract – what made sense years ago may be outdated. Finally, the IRS recommends getting an independent reviewer to check your plan. An independent reviewer may see something that has been overlooked by others, which could save you and your employees’ money, and may improve benefits.
A retirement plan check-up should include a careful review of your plan documents to confirm that the plan’s current terms are being administered correctly and that the current plan language still makes sense or is not unnecessarily limiting. Consider whether changes to plan design can help employees improve their retirement readiness or if there are features that could be added to the plan to improve participation and contribution outcomes.
What to expect from our review:
We will check to make sure you plan is in compliance.
We will check for red flags & poor plan design.
We will check to make sure the plan meets the current needs of the company (requirements change over time).
We will check to see if your plan allows you to take advantage of recent legislative enhancements that may not have been available at plan inception.
As a plan sponsor, you have a fiduciary responsibility to regularly review and monitor your plan and to make sure your costs are reasonable. A check-up allows you to confirm that your plan is in compliance, identify risks, and consider whether improvements may benefit the plan.
Established in 1984, SMA Services has the experience you can rely on to make sure your retirement plan is as good as it can be.
Don’t delay, learn more about our free review, and have Mark Massey, our resident expert with more than 30 years in the industry, review your plan. There is no obligation, no pressure to buy anything, just helpful information and an expert resource to help answer your questions and improve your plan.
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