Every company hires a professional to look after the duties and responsibilities of the designation. Regardless of the position, it is important to learn your duties before anything else so that you can make the right move at the right time. Likewise, if you have been hired for Boca Raton 401K administration, you need to be ready to look after the complex tasks because you will have to deal with different bodies, perform calculations and take care of records all at the same time. Above all, you should also need to keep an eye on the laws and regulations to ensure that the plans are compliant.
Enrollment and eligibility
If there is a new employee in the company, you need to check whether he or she is eligible for the 401K plan. You will have to send the notification about their impending eligibility along with the details before the enrollment is done. If it is not done on time, it can cause serious consequences in terms of money.
Making deposits to 401K plan
Deposits are the main component of this plan, and you have to ensure that proper contribution is done well on time. If the auditor finds out that you were late in deposits, you might have to make up for the lost employee’s benefits, pay an excise tax to the IRS, and file form 5330.
Processing of loans
If the participant of the 401K plan requests for the loan, you will have to review, approve and document his request so that the repayment plan is worked out and added in the next payroll cycle. Once the loan is paid off, you will have to update the payroll system. If you fail to do so, you will have to reverse the loan repayment and refund the payment.
If the employee leaves the company
When an employee is terminated, it is the duty of an administrator to update the system and transfer the assets to the new plan or whatsoever is deemed good. If the termination does not happen properly and the plan is not updated, there may be delays in processing the request.
Checking compliance annually
It is a responsibility of a 401K administrator to check whether all plans are compliant according to the federal and state laws. Any mistake or amendment needs to be corrected to avoid further confusion.
As an administrator, your job might be tough. However, you must adhere to the procedures and calculations.