Overview
Retirement plan sponsors should perform a regular compliance and recordkeeping review to reduce audit risk and protect participant benefits. This checklist summarizes core administrative tasks and places to focus attention so a plan is well-documented, contributions are handled correctly, and fiduciary responsibilities are clear.
Key takeaways
- Keep critical plan documents permanently and other filings for the required retention period.
- Test and reconcile payroll and contribution data promptly to meet deposit and reporting rules.
- Confirm fiduciary roles, beneficiary designations, and bond coverage are current.
How it works
ERISA-governed retirement plans rely on accurate records, timely deposits, and clear written procedures to meet regulatory expectations. A routine year-end or periodic review compares plan documents and amendments to operational practices and uncovers gaps in documentation or timing that could trigger examiner questions.
Many employers coordinate with third-party recordkeepers to run compliance testing and process year-end filings. If you need administrative services or help with plan operations, consider resources such as Employee Benefit Plan Administration to review setup and workflow.
What it may cover (and what it may not)
A compliance review typically covers document retention practices, timely deposit of employee contributions and loan repayments, plan eligibility and enrollment activity, fidelity bond coverage, and a roster of fiduciaries with written responsibilities.
The review does not replace legal advice about plan design or qualified plan testing that requires actuarial determinations; for changes that affect benefit structure or compliance strategies you may need specialized counsel or actuarial services.
Common mistakes to avoid
Failing to retain key documents, missing timely deposit windows for employee contributions, and not documenting fiduciary assignments are frequent issues in audits. Other common problems include incomplete beneficiary designations and bond coverage that does not reflect actual plan assets.
Keep participant records for the duration of employment and for an extended period afterward, and retain annual filings and supporting materials in an accessible, secure location.
Questions to ask an agent
When reviewing plan administration support, ask whether the provider performs year-end compliance testing, maintains document retention schedules, and helps reconcile payroll with plan records. Also ask how they handle participant communications and beneficiary form tracking.
If you want services that integrate benefits and workplace policy guidance, review offerings such as Labor Relations and Employment Policies for related employer responsibilities.
Next steps
Start by confirming retention schedules for core plan documents (plan document, adoption agreement, amendments, and summaries), year-end filing storage, and participant record retention rules. Send final payroll and census files to your recordkeeper promptly so compliance testing can be completed.
Audit your fourth-quarter payroll and deposit dates for contribution timing, update fidelity bond coverage to reflect current plan assets, and ensure newly eligible employees received and returned enrollment materials. For broader benefits administration and coordination with HR programs, consider resources like Employer Benefits: Retirement, Health, Wellness, ADA & End-of-Life Products.
If you want help with the review or to discuss specific issues, talk to an agent who can guide documentation and next steps.
Frequently Asked Questions
How long should I keep plan documents?
Keep core plan documents—plan text, adoption agreements, amendments, and summary plan descriptions—permanently, and retain annual filings and supporting materials for at least six years from the filing date.
When must employee contributions be deposited?
Employee contributions and loan repayments must be deposited promptly according to regulatory timing rules; many plans treat payroll-cycle deposits as a best practice and reconcile deposit dates during year-end reviews.
What records should I keep for terminated participants?
Maintain participant records for the duration of employment and retain them for at least several years after termination to support distributions, rollovers, and any audit inquiries.
How do I confirm fidelity bond coverage is adequate?
Review the plan’s asset value and custodial arrangements and update the ERISA fidelity bond amount to reflect current plan assets, noting higher coverage requirements when employer stock is held.