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How are 401(k) plans regulated?

April 26, 2017k plans regulated

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How are 401(k) plans regulated?

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401(k) plans can become top heavy, requiring employers to increase participation among make contributions to non-key employees. 401(k) plans are required to pass annual ADP and ACP tests. These nondiscrimination tests ensure that there is a balanced participation from non-highly compensated employees and highly compensated employees. Employers are also required to comply with controlled group rules. The IRS also requires 401(k) Plans and other tax-qualified retirement plans to comply with many important filing deadlines throughout the year.