Friday, July 1, 2011
Improving Your 403(b) Plan
Posted by Mary Moran
The second year of auditing 403(b) plans is in full force! Plan sponsors are still working hard to ensure that they are complying with the new laws and regulations. Here are some questions to consider as you work towards improving your plan:
1) Are employee contributions being remitted to the plan as soon as they can reasonably be segregated from the employer’s general assets?
2) Is the correct definition of compensation being used to defer employee and employer contributions?
3) Has a formal investment policy been established?
4) Has a plan oversight committee been established?
5) Is your plan adequately bonded?
6) Has required nondiscrimination testing been performed?
7) Are the IRS limitations surrounding employee deferrals being considered?
8) Are all plan documents and trust reports being considered/received from your third party administrator?
Don’t forget to file your 5500 extension by 7/31 if your plan has a 12/31 year-end and requires an audit that will not be completed before 7/31.
Do you have any questions or concerns in these areas? Let us know, we’re here to help.
Mary joined Armanino in 2004 and has more than 10 years of public accounting experience providing audit and accounting services to companies and organizations in a broad range of industries. She specializes in the financial statement audits of nonprofit organizations, mortgage pools and employee benefit plans. She is a Certified Public Accountant (CPA) and a member of both the American Institute of Certified Public Accountants and the California Society of CPAs. Mary graduated from the University of California, Davis, with a Bachelor’s degree in Economics.