On September 29, 2022, the IRS published a new edition of its Employee Plans News periodical. The IRS reminds employers that:
- “The plan sponsor is responsible for all things having to do with the plan, from determining when employees enter the plan, to distributions, to filing the Form 5500 series returns. If you purchase or set up a plan with a financial institution or hire an advisor to help with your plan, make sure you understand exactly what they’re going to do for you. In the end, the plan sponsor is responsible for administering the plan.”
- Contributions made to a Roth IRA are not affected by amounts contributed to a Roth 401(k) plan account, and vice-versa, although the contribution limits for Roth IRAs and Roth 401(k) plan accounts cannot exceed the respective annual IRS limits.