When I look at plan errors, one major area of a plan keeps coming up: compensation issues. Compensation issues deal with the definition of Compensation in the plan as well as when salary deferrals are dealt with in the plan.<\/p>\n
I\u2019ve come across so many plans where the wrong definition of Compensation is being used which usually require the employer to make a corrective contribution to the Plan. Other compensation issues deal with untimely deposits of 401(k) deferrals (I have a complete side business of dealing with employers in that area) and so many issues with payroll especially employees trying to modify their deferrals.<\/p>\n
As an employer, you need to sit down with your payroll provider and your third-<\/a>party administrator to make sure that there are no issues in dealing with Compensation because I think it frequently is becoming one of the biggest issues with 401(k) plans.<\/p>\n <\/span><\/p>","protected":false},"excerpt":{"rendered":" When I look at plan errors, one major area of a plan keeps coming up: compensation issues. Compensation issues deal with the definition of Compensation in the plan as well as when salary deferrals are dealt with in the plan. … Continue reading