Did the IRS Send You Its Latest Questionnaire?
What You Need to Know About the 401(k) Compliance Check
The Internal Revenue Service is sending letters to 1,200 randomly selected employers who sponsor 401(k) plans, instructing them to complete the 401(k) Compliance Check Questionnaire. The questionnaire must be completed on the IRS website within 90 days of receipt or enforcement action will follow. Employers who receive a questionnaire are advised to respond carefully and take certain precautions. Potential problems may be uncovered in the course of completing the questionnaire. With some advance planning, outstanding issues can be addressed before the questionnaire is returned, which can minimize future audit exposure.