The IRS has completed compiling data from a 401(k) questionnaire it sent to 1,200 plan sponsors. The findings show what the most popular plan features are.
Some of most common features:
- Catch-up contributions (96% of plans offer this)
- Direct rollover distributions (79%)
- Hardship withdrawals (76%)
- Matching contributions (68%)
- Non-elective profit-sharing contributions (65%)
- Employee loans (65%)
- Restriction that participants be 21 or older (64%), and
- Requirement that employees must be on the job for at least a year before they can join the plan (54%).
Other notable design features and the percent of plans offering them:
- Ability for participants to change deferrals at any time (41%)
- Roth option (22%)
- No age requirement to sign up (20%), and
- No minimum service requirement (13%).
The IRS also found that 53% of respondents use a third-party administrator.
Info: To download the IRS’ 401(k) Compliance Check Questionnaire Interim Report, click here.
