By the end of the year, sponsors of single-employer retirement plans should complete any necessary and discretionary amendments as well as perform a review of the plans operations to ensure compliance with statutory and regulatory requirements.

Plan Amendments

• Discretionary Plan Changes - if discretionary, operational, or plan design changes were made by a calendar-year plan for 2015, the amendments must be formally adopted by December 31, 2015.
• Defined Contribution (DC) Plan Restatements for 2016 - For DC plan sponsors with pre-approved prototype or volume submitter plan documents, restatements must be adopted before April 30, 2016. The same deadline applies for a submission to the IRS for a favorable determination letter for such pre-approved plans that have modifications.
• Safe Harbor 401(k) Plans - Avoid mid-year amendments until the IRS issues guidance. Ensure that any plan changes, including adding or removing a safe harbor arrangement, are effective as of the beginning of the plan year.
• Cash Balance and Hybrid Plan Regulations - Unless the IRS extends the deadline, plan sponsors must comply with the 2015 final rules beginning in 2016.

Effective January 1, 2017, the IRS will no longer issue determination letters for individually designed plans. To continue to receive these letters, plan sponsors may wish to adopt a pre-approved plan. Cycle E filers can do this by signing Form 8905 before January 31, 2016. DC plan sponsors have until April 30, 2016 to adopt the pre-approved plan. DB plan sponsors have several years before adoption is required. Most individually designed plans are permitted to adopt pre-approved plans, including certain employee stock ownership plans (ESOPs) and cash balance plans.

Operational Action Plans - Compliance Reminders

• Make recurring age 70½ required minimum distributions (RMDs) for both DC and DB plans
• Process corrective distributions to correct a failed 2014 actual deferral percentage/actual contribution percentage test to maintain a 401(k) plan's qualified status
• Maintain documentation for loan or hardship distribution processes
• Review your fiduciary governance and internal controls as well as maintain your plans investments and fees
• Review plan documents and administrative processes, contracts and communications relating to same-sex marriages

Voluntary Compliance Corrections

• IRS Employee Plans Compliance Resolution System (EPCRS) - Plan sponsors that fail to adopt a plan amendment should consider correcting the mistake through the EPCRS. Fees to resolve failures through this system are significantly lower than the monetary sanctions incurred if a late amendment or failure to adopt an amendment is discovered during an IRS audit or a determination letter request review.
• USDOL Delinquent Filer Voluntary Compliance Program (DFVCP) - Delinquent filers can pay reduced civil penalties for voluntarily complying with the annual reporting requirements. The program allows plan sponsor to file information returns with IRS Form 5500.
• USDOL Voluntary Fiduciary Correction Program (VFCP) - Fiduciaries can avoid personal liability for its responsibilities under ERISA. If a breach is discovered upon audit, there may be mandatory civil penalties and related liability to restore the plan under a settlement agreement with the Secretary of Labor or under court order.