Every year, companies and organizations are required to complete their plan's annual compliance testing. These tests are performed to ensure all employees of the organization are receiving the appropriate benefits, and that employers are adhering to ERISA and IRS rules and regulations governing retirement plans.
While many organizations go through the proper protocols and steps to a “T,” they still can run into issues that may keep them from "passing" such compliance tests. However, it’s important to keep in mind that “failing” shouldn’t always be seen as a negative. Typically, it means you have a minor setback that has delayed your eventual passed test, or you simply maximized your plan’s benefit offering and then some. Should you find your company has “failed” any of the required compliance testing, do you know what steps you can take to amend the results?