End of Year Checklist for Plan Sponsors: Ensuring Compliance and Maximizing Benefits
As we approach the 4th quarter of 2024, it’s crucial for plan sponsors to take a proactive approach in reviewing their retirement plans. This end-of-year checklist will help ensure compliance with regulatory requirements and optimize the benefits for plan participants.
- Review Plan Documents
- Compliance Check: Ensure that your plan documents reflect all current regulatory requirements, including any amendments required by the SECURE Act 2.0, CARES Act, and any recent IRS guidance.
- Operational Compliance: Verify that the plan’s operations match the written plan documents, as discrepancies can lead to significant compliance issues.
- Conduct a Fiduciary Review
- Fiduciary Responsibilities: Assess the actions of plan fiduciaries over the past year to ensure they are acting in the best interests of participants. Review meeting minutes, decisions made, and the documentation of those decisions.
- Service Providers: Evaluate the performance and fees of service providers to ensure they are reasonable and that providers are fulfilling their fiduciary obligations.
- Review Investment Options
- Performance Review: Evaluate the investment options offered in the plan, ensuring they are performing according to expectations and are appropriate for the plan’s participants.
- Fee Assessment: Conduct a review of investment fees to ensure they are competitive and transparent.
- Prepare for Annual Filings
- Form 5500: Begin preparations for the timely filing of Form 5500, ensuring all necessary information is collected and accurate.
- Audit Requirements: If applicable, confirm that any required plan audits are completed and any issues identified are addressed.
- Plan for 2025
- Strategic Planning: Use the year-end review as an opportunity to plan for any changes or improvements in the coming year, such as introducing new plan features or adjusting the plan design.
By following this checklist, plan sponsors can close out the year with confidence, knowing they’ve taken steps to ensure compliance, reduce fiduciary risk, and maximize the benefits of their retirement plan for participants. To ensure plan sponsors stay compliant while maximizing benefits, contact the team at Innovative Investment Fiduciaries by calling 856-242-3343 or email resources@iifria.com.
