Coverage, Nondiscrimination, and Top Heavy Testing
As a condition for receiving favorable tax treatment, employers sponsoring retirement plans must establish that the plan does not disproportionately benefit owners and other highly-compensated employees. Not only does TSC perform all of the tests needed to demonstrate that the plan benefits an acceptable cross section of employees and is entitled to tax-advantaged treatment, we also make sure that contributions to the plan are fully optimized based on the client’s needs and goals.
Most plans are required to file an annual report with either the Internal Revenue Service (IRS) or the Department of Labor (DOL). There are additional reports that must be filed on an as-needed basis. TSC prepares signature-ready reports for its clients.
Eligibility Determination Review
As part of TSC’s annual testing and reporting services, TSC verifies that the eligibility status of employees follows the provisions outlined in the plan document.
Processing Distributions and Loans
Includes processing of required minimum distributions, hardship distributions, in-service withdrawals, qualified domestic relations order distributions to alternate payees, etc.
TSC compares payroll and recordkeeper reports to make sure that the plan’s records are accurate and consistent.
Plan Document Drafting and Maintenance
TSC drafts customized plan documents and applicable required and discretionary amendments. We also provide real-time web access to current plan document, amendments, Summary Plan Descriptions, and applicable employee notices.
Even the best-run plans can be selected for audit by the Internal Revenue Service (IRS) or the Department of Labor (DOL). We at TSC are familiar with the typical audit process and will work to ensure that you are prepared to answer any questions that the auditor may have.
Plan Correction Services
Juggling the tasks required to run a business at the same time as handling HR and employee benefits programs is difficult and mistakes can and do happen. Fortunately, the IRS and the DOL recognize this and have created voluntary correction programs that can bring the plan back into compliance. While these programs in and of themselves are complex, TSC is experienced with both the IRS and the DOL programs and can help you determine the best approach and prepare the necessary paperwork. We often communicate directly with the IRS or the DOL on behalf of our clients to achieve the best-possible resolution.