Compliance - 401(k)

[Manish]

If I start today to learn compliance for 401(k) plans or for that matter all the DC Plans. What are the basics that i need to take care of at first to gets the fundamental right?

[ratherbereading]

Why are you asking? Do you work for a TPA; an investment house?  You can Google and find a ton of information on 401k plans (not all accurate); you can take classes.  Compliance convers a big area. You can take the ASPPA exams which you queried about before.  That's a good starting point.

[C. B. Zeller]

I'll repeat ratherbereading's question and ask why? What's your goal? If we know more about what you're trying to accomplish it will help us point you in the right direction. Are you trying to break into the industry? Move into a different role at your company? Impress people at parties with your encyclopedic knowledge of qualified plans?

ASPPA's Retirement Plan Fundamentals is a great place to start. Everyone at our company (a TPA) completes this within their first few months.

ASC did a 5-part webcast series earlier this year on the fundamentals of qualified retirement plans. I didn't attend personally but I head it was good.

Off the top of my head, if I were to come up with a list of things you need to know in order to have a solid grasp of the fundamentals, it would include:

• eligibility
• coverage
• non-discrimination including ADP/ACP
• top-heavy
• safe harbor plans
• distributions, including QJSA and rollovers
• taxation including sec. 72(t)
• RMDs
• annual additions/maximum benefit limits
• elective deferral limits
• compensation limit
• vesting and forfeiture
• deduction limits
• participant loans
• form 5500
• prohibited transactions and fiduciary issues

[Manish]

HI Guys.

Thanks for responding.

I work for a TPA & currently working with the projects team(consists of processes like fund change, quarterly investment reports creation, auto enroll/increase,data scrubbing etc). I'm trying to move into a different role in my company, most likely Compliance. I know few things about it, but wanted to know the must know basics, the things which everyone in compliance should know, to have some base for my study.

Thanks Zeller for the list.  

[BG5150]

You should talk to someone in your Compliance area.  Some companies value ASPPA credentials, some not so much and rely on in-house training.

Your best best is to talk tot he manager over there to see what he or she thinks.