Human Resources News & Insights

Heads up: Feds to take close look at employer retirement plans

A letter from the Internal Revenue Service may soon find its way to your desk.

The IRS recently announced it’ll be looking at employer 401(k) plans using a plan compliance questionnaire.

At the end of the month, 1,200 questionnaires will be sent out to employers who completed a Form 5500 in 2007.

The questionnaire is “technically voluntary,” but an IRS spokesperson made it very clear the agency’s hot to get as many responses as possible..

Should you receive a questionnaire, you must complete it within 90 days. However, you can get an extension if needed.

Each questionnaire must be completed online, and employers will be assigned a personal identification number to assist in doing so.

The IRS says the info gathered from these questionnaires will be used to identify areas “where more focused education, guidance, and outreach is needed.”

Note: While this is not an audit, the IRS has used other similar surveys to open audits — so make sure it’s completed by someone with a thorough knowledge of plan compliance.

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