IRS Still Focusing on 401(k) Audits
According to Acting Director of IRS Employee Plans Thomas Petit, the IRS still lists 401(k) plans among its top examination priorities. Petit provided that confirmation to attendees of the ASPPA Regional Conference in Chicago.
An IRS report said that during the period 2006-08, 60 percent of 401(k) plans had an increase in loan defaults and almost half of plans had a higher number of outstanding loans. It also said that the report shows the importance of using the right codes when filling out and filing the Form 5500. Petit also said that the report also allowed the IRS to identify some recurring errors 401(k) plan administrators make. These include non-amender/late amender issues, failure to follow plan terms, nondiscrimination issues, breaking the 402(g) limits and failure to deposit employee elective deferrals on time.
This information is provided by John Lekel, Senior Writer and Editor for the ASPPA Net and NTSA Net portals.
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