The Importance of Timely Remittance of 401(K) Deferrals

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Author: Courtney S. Barrack, CPA

For small businesses who think timely remittance of employee deferrals to a 401(k) plan is unimportant, think again. This week the Department of Labor (“DOL”) announced a Virginia Beach company has been ordered to restore 401(k) funds held as far back as January 1, 2007 and pay a civil penalty of more than $15,000.

The Employee Benefits Security Administration (“EBSA”), an agency of the DOL, through its enforcement of Title I of the Employee Retirement Income Security Act of 1974 (“ERISA”), protects the security of retirement and health plan benefits and assets for all workers who have employer-sponsored plans.  This judgment is one example that they are indeed addressing such issues aggressively.

As noted in the DOL's strategic plan, “EBSA seeks to correct violations of ERISA through an aggressive enforcement program integrated with an effective participant assistance program. EBSA will partner with worker and community-based organizations to identify violations and to educate workers, small businesses, and others about the requirements of ERISA, which EBSA believes is an effective way to create broad-based compliance.”

Should you have any specific questions about the requirements of ERISA, feel free to contact Courtney Barrack, CPA, or your Keiter client service professional for further clarification.

About the Author

Keiter CPAs is a certified public accounting firm serving the audittax, accounting and consulting needs of businesses and their owners located in Richmond and across Virginia. We focus on serving emerging growth businesses and companies in the financial servicesconstructionreal estatemanufacturingretail & distribution industries and nonprofits. We also provide business valuations and forensic accounting servicesfamily office services, and inbound international services.

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The information contained within this article is provided for informational purposes only and is current as of the date published. Online readers are advised not to act upon this information without seeking the service of a professional accountant, as this article is not a substitute for obtaining accounting, tax, or financial advice from a professional accountant.


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