By Vincent M. Rinaldi, LUTCF, CFP, is Vice-President of New England Schooner, Inc. and the Director of NES Retirement Plan Services, a wholly owned subsidiary, in Peabody, MA. To learn more about these strategies, please call 978.977.4757, or Benjamin Lewis at 301.963.7555.
401k plan sponsors are always asking us about their retirement plan and what needs to be addressed before the end of the calendar year. To assist them in tackling their concerns, we have developed this quick "To Do List."
There have been a lot of pension legislation passed in Congress over the past few years. Be sure your plan is current and that all plan amendments and documents are completed as required. Call your Third Party Administrator or plan provider to verify it is being done.
Have an ADP/ACP test performed on your plan to be sure that if any corrections are needed, you can get them made prior to March 15, 2004.
If you are establishing a new 401k plan for your company, be sure your plan documents are in place on or before December 31, 2003.
Consider increasing plan deferrals to take advantage of tax deductions for 2003.
If your plan has participants that are age 50 or older, help them determine if they are eligible for catch-up contributions. For more on catch-up contributions click here.
If you have a "safe harbor" plan, you need to provide plan participants with a "safe harbor" notice at least 30 and not more than 90 days before the beginning of each plan year. If this applies to your plan, you need to double check to see that this was done.
Do a plan assessment. Click here for questions to ask in an annual defined contribution plan assessment.
Touch base with your Third Party Administrator or plan provider and ask them if they know of any task that needs to be completed before year-end.
