Thomas Schendt was quoted in a Chicago Tribune article that discussed noncompliant retirement plans, an employer mistakes that could imperil an employee’s 401(k) savings. Beyond advising readers not to wait until the evening of the April tax-filing deadline to look at their workplace earnings statement, Schendt, a speaker for a recent IRS Webcast discussion on plan mistakes, also pointed out that many 401(k) mistakes, such as a company payroll system that allows too much in contributions during a year, aren’t considered mistakes at all if they are corrected by the filing deadline.
In the article, Schendt preaches vigilance: Beyond your own account, keep a watchful eye out if your company changed payroll providers recently, or do fairly often. “A lot of these mistakes come down to the functioning of payroll,” he said.
Schendt went on to note that “system upgrades or provider switches can compromise the integrity of the department’s date, so it’s a good idea to check in annually to make sure the system has your information.”