In addition to our recent webinar about reducing benefit plan risk and fulfilling fiduciary responsibilities, our team recently attended and presented at the 2023 AICPA & CIMA Employee Benefit Plans Conference. Whether you attended the event yourself or you’re looking for a refresh, here are our key takeaways:
- IRS top qualification issues identified on exam. You can’t predict when your plan might fall under IRS examination, but you can prepare. Among several items, the IRS shared some specific errors that are seen upon exam:
- Improper contribution and forfeiture allocations
- Late deposits resulting in prohibited transactions
- Excluding eligible employees from the plan
- Not timely amending the plan
- SECURE Act 2.0. SECURE Act 2.0 was signed into law in December 2022. There are over 90 updates to retirement plan provisions, including the requirement for new plans to implement automatic enrollment and escalation provisions, changes in required minimum distribution ages, and updates to contribution limits. Our experts weigh in on the full impact of SECURE 2.0 here.
- DOL guidance on cybersecurity. It’s part of the plan sponsor’s fiduciary responsibility to ensure that there’s proper mitigation of cybersecurity risks. Here’s a guide of 12 best practices that plan sponsors and service providers should follow.
- Plan sponsors. A panel of plan sponsors gathered to discuss common challenges and best practices, including the following highlights:
- Dealing with turnover is a common challenge; try to plan for this by having well defined roles and documenting roadmaps of common tasks related to plan administration.
- Get the most out of service providers by ensuring they have the relevant technical expertise and by scheduling regular touchpoints.
- Prepare for a DOL audit by performing your own “self-audit.”
- Fraud awareness. Does your team have a good awareness of what to look for to identify potential fraud? Do you spend sufficient time assessing the risk of fraud within your organization and/or your plan?
We have our own thoughts to share on all of the above, so feel free to reach out — we’re happy to help.
