For HR professionals and C-Suite executives, managing an ERISA retirement plan is more than just a routine administrative task; it’s a fiduciary responsibility that demands precision, coordination, and compliance with ever-evolving regulations. Navigating the complexities of ERISA plan compliance is a critical responsibility for plan sponsors, yet many organizations struggle to meet the rigorous standards set by the Department of Labor (DOL) and the Employee Retirement Income Security Act (ERISA). From plan document and eligibility oversights to late contributions and data errors, even seemingly minor missteps can lead to costly corrections, audit deficiencies, and potential regulatory scrutiny. As retirement plans continue to evolve under new legislation like the SECURE 2.0 Act and the ever-increasing need for improved cybersecurity, staying ahead of compliance challenges is more important than ever.
In this blog, we aim to highlight some of the most common 401(k) compliance issues uncovered during audits, providing practical insights and best practices to help employers and plan sponsors strengthen their internal controls, enhance data accuracy, and fulfill their fiduciary responsibilities. Whether you’re managing a large plan or overseeing a small business retirement offering, understanding these pitfalls and implementing prudent best practices to avoid or mitigate them can make a significant difference in your plan’s long-term success and demonstrate your commitment to fiduciary excellence and integrity.
Robert Massa, Managing Director, Houston Market Retirement Practice Leader, contributed to this this article.
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