Here are the top ten 401(k) compliance issues

1. Has your plan document been updated within the past few years to reflect recent law changes?

2. Have you notified the people who service your plan of any plan changes?

3. Is your plan's operation based on the definitions and requirements (terms) written in your plan document?

4. Were all eligible employees identified and given the opportunity to make an elective deferral election?

5. Is the plan's definition of compensation used for all deferrals and allocations?

6. Have you timely deposited employee deferrals each pay period?

7. Have you identified all your highly compensated employees and key employees, including owners and their family members, so that your TPA can perform your nondiscrimination tests?

8. Have the 401(k) nondiscrimination tests (ADP, ACP, and top-heavy) been performed counting all eligible employees?

9. Have you filed a Form 5500 series return, and have you distributed a summary annual report (SAR) to all plan participants this year?

10. Are elective deferrals limited to the amounts under Code Section 402(g) for the calendar year?

 03.10.2007