For many people, the start of a new year means resolutions to get in shape, save money and spend more time with family. For 401(k) plan administrators, it’s a good time to reflect on the plan’s operation and make tune-ups where needed. Here are six steps you can take to make sure your plan is ready for the New Year:
1) Think about whether you need to make any changes to your plan for 2017.
Some items must be completed before the start of the plan year, such as certain changes to matching or profit-sharing contributions. Other things can be done after the start of the year, such as distribution requirements or participant loans, but you’ll still want to be timely and communicate them to participants.
2) Speaking of plan changes, make sure any amendments made in 2016 are signed properly and timely.
Now is a good time to look back and make sure your documentation for any 2016 change is complete. Do you have proof of authority to make the change, such as a corporate or committee resolution? Was the amendment signed? Were participants notified of the change, if necessary?
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