We keep you updated with the latest news from Martin Hood and helpful information whenever there is a change to employment or tax laws.
June 27, 2022
The IRS has announced a pre-examination compliance program for qualified retirement plans, including 401(k) plans. Under this pilot program, which begins this month, sponsors of plans that have been selected for an upcoming IRS examination will be notified by letter. The plan sponsor then will have 90 days to review its plan documents and operations for compliance with Code requirements and respond to the IRS.
Plan sponsors can appreciate the opportunity to self-correct and potentially avoid a full IRS examination. Those that receive a pre-examination letter should be prepared to undertake an internal review promptly, because 90 days can go by quickly. If no response is received within 90 days, the IRS will schedule an examination of the plan.
If you feel Martin Hood’s Employee Benefit Plan team can assist you or you simply have a question, give us a call at (217) 351-2000.