The Internal Revenue Code provides significant tax benefits for both employers and employees participating in a 401(k) or 403(b) plan. In exchange for these tax benefits, the plan must satisfy a litany of requirements, notably that a plan be administered in accordance with its plan document. Failure to do so could result in the plan's loss of its tax-qualified status, which would result in adverse tax consequences for the employer and plan's participants. A common failure is not following the participant's contribution election, or perhaps failing to auto-enroll a participant otherwise eligible to be. So how do employee contribution failures occur, and how are they typically corrected? How do the IRS correction procedures treat automatic deferral plans? Grab your cup of coffee and tune in to hear Richard and Sarah chat with Seyfarth colleague Sarah Magill about these pressing questions and more!
Click here to listen to the full episode.
The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.
