How Clean Is Your Plan Data? | Millennium Trust Company

How Clean Is Your Plan Data?

September 11, 2018
By Terry Dunne

Keeping participant data up-to-date is one of the key challenges currently facing workplace retirement plans. It’s no coincidence that this issue has also become a focus for Department of Labor (DOL) and Internal Revenue Service (IRS) audits during the past year.

For retirement plan administrators, that means that your plan should establish a formal, documented process for managing participant data if it doesn’t already have one in place. Further, if your well-defined data management process does let a participant’s information slip through the cracks, having another process for rolling those accounts over to Safe Harbor IRAs should also be a priority.

While the DOL and IRS are focusing on these issues, they’ve yet to create specific guidelines for active plans. However, it is possible to take the guidelines issued for terminating plans and extrapolate what a reasonable process looks like.

To learn more about the processes that can help protect your plan, read the "401k Plan Management: How to Better Organize Participant Data" article that was published in 401(k) Specialist.

The material in this blog is presented for informational purposes only. Millennium Trust Company performs the duties of a directed custodian, and as such does not sell investments or provide investment, legal or tax advice.

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