Annually, the IRS identifies the 12e biggest mistakes noted in 401(k) plans and publishes a “fix-it” guide to assist HR professionals/plan administrators. Of those twelve, four such mistakes are the most common across plans. These pitfalls should be taken into account when administrators are conducting an audit for an employee benefit plan, or an EBP, particularly those doing so for the first time.
- You haven’t timely deposited employee elective deferrals. This mistake happens frequently, especially for many newly audited plans, because many professionals are unaware of the timing guidelines.