audit support

Retirement plan administration

Best practices for employers

Here are some of the “best practices” that employers can implement to streamline their retirement plan record keeping procedures.

Employment Records

Keep track of your employees’ records.

  • Name
  • Social Security number
  • Date of hire
  • Date of birth
  • Date(s) of termination (if any)
  • Date(s) of rehire
  • Leave of absence dates (military, disability, FMLA, maternity/paternity, etc.)
  • Current mailing address

Payroll Records

Keep complete and accurate payroll records. At the end of your plan year (calendar or fiscal year), you should be able to provide a report to your administrator that includes the following:

  • Total wages (amount each employee earned before ANY deductions)
  • Retirement plan contributions (pre-tax or Roth, 401(k), 403(b), or 457)
  • Hours worked (check your Plan Document for the method required for tracking hours)
  • Excluded compensation, if any (your plan may exclude some compensation for purposes of determining the employer contribution or for certain compliance tests)
  • Employee type (some plans exclude certain types of employees like Union or Hourly employees, other plans may allocate contributions differently to different types of classes of employees)

Corporate Records

Provide to your pension administrator information about your company every year :

  • Provide a list of the shareholders/partners/owners of the company
  • Indicate whether there are family members of anyone listed in who work for the company (spouses, children, parents)
  • List any other companies owned by anyone listed
  • List the corporate officers who work for the company

Deposit Records

  • Keep a running list of the deposits made to the plan.
  • The pay period for which the deposit was made
  • The amount of the deposit
  • The date the deposit was sent/posted to the trust (ACH transfers are preferred over mail)
  • The subtotal of each of the various types of contributions sent (pre-tax, Roth, employer match, loan payment, etc.)

Keep a calendar of important events

Keep a calendar of events for your plan so that you never push up against a deadline.

401(k) Compliance Calendar