The Internal Revenue Service (IRS) has begun sending out questionnaires and letters to 1,200 randomly selected 401(k) plan sponsors.  Employee Plan Examinations previously conducted by the IRS indicate that 401(k) plans are by far the most non-compliant plan type in the retirement plan universe.  These plans have a significant impact on the health of private retirement in America and make up over 60% of the retirement plan universe.  It is important that they maintain the highest level of compliance possible: the Questionnaire is intended to assist the IRS in identifying compliance areas where additional education, guidance and enforcement are needed. 

About the Questionnaire

The IRS is randomly selecting 401(k) plan sponsors that filed a Form 5500 for the 2007 plan year to complete the Questionnaire.  Plan sponsors who receive a letter from the IRS will complete the Questionnaire by accessing a secure website.  The Questionnaire categories are: 

The Questionnaire is intended to be a review by the IRS to determine adherence to certain compliance requirements under the IRS Code.  The Questionnaire is not an audit or investigation; however failure to complete the Questionnaire will result in further enforcement action and a possible examination of your plan.

 If you receive a questionnaire and would like assistance, please call Dan Weintraub, CPA and Partner, at (716) 204-9000.