Managing a retirement plan comes with ongoing responsibilities - and staying ahead of compliance requirements, administrative tasks, and fiduciary duties is key to protecting both your plan and your participants A quarterly checklist can help plan sponsors stay organized, reduce risk, and ensure nothing slips through the cracks. Here are some action items for this quarter to help keep your plan on track, compliant, and operating efficiently.
April
- If a plan audit is required in connection with the Form 5500, make arrangements with an independent accountant/auditor for the audit to be completed before the Form 5500 due date (calendar-year plans).
- Audit first quarter payroll and plan deposit dates to ensure compliance with the DOL’s rules regarding timely deposit of participant contributions and loan repayments.
- Verify that employees who became eligible for the plan between January 1 and March 31 received and returned an enrollment form. Follow up on forms that were not returned.
May
- Monitor the status of the completion of Form 5500, and, if required, conduct a plan audit (calendar-year plans).
- Issue a reminder memo or email to all employees to encourage them to review and update, if necessary, their beneficiary designations for all benefit plans in which they are covered.
- Perform a thorough annual review of the plan’s summary plan description and other enrollment and plan materials to verify that all information is accurate and current, and identify cases in which revisions are necessary.
- Provide quarterly benefit/disclosure statement and statement of plan fees and expenses actually charged to individual plan accounts during the prior quarter, within 45 days of the end of the last quarter.
- By May 15 (or 45 days after the end of the quarter) participant-directed defined contribution plans must supply participants with a quarterly benefit/disclosure statement and a statement of plan fees and expenses actually charged to individual plan accounts during the first quarter.
June
- Begin planning an internal audit of participant loans granted during the first six months of the year. Check for delinquent payments and verify that repayment terms and amounts borrowed do not violate legal limits.
- Confirm that Form 5500, and a plan audit if required, will be completed prior to the filing deadline or that an extension of time to file will be necessary (calendar-year plans).
- Review plan operations to determine if any qualification failures or operational violations occurred during the first half of the calendar year. If a failure or violation is found, consider using an Internal Revenue Service or DOL self-correction program to resolve it. Check for any Actual Deferral Percentage/Actual Contribution Percentage refunds due to highly compensated employees for eligible automatic contribution arrangement plans to avoid an employer excise tax.
If you’re looking for assistance with any aspect of plan management — from audits to operational reviews or participant engagement — I’m here to help. Together, we can create a streamlined approach that keeps your plan compliant and aligned with your goals. Contact me today to discuss how we can make plan management easier and more effective.
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This material was created for educational and informational purposes only and is not intended as ERISA, tax, legal or investment advice. If you are seeking investment advice specific to your needs, such advice services must be obtained on your own separate from this educational material.
Consult your plan’s financial, legal or tax advisor regarding these and other items that may apply to your plan. This is not intended to be an exhaustive Quarterly-to-do-List but meant as an illustrative guide. Please contact your Adviser for additional information.
Securities offered through LPL Financial, member of FINRA / SIPC. Investment advice offered through Diversified Financial Advisors LLC, a registered investment advisor and separate entity from LPL Financial.
Informational sources: irs.gov, plansponsor.com, asppa.org and Kmotion Research 2024
GRP-390-1124 (Exp. 11/25)