Video | Avoid Costly Missteps in Your 401(k) Plan Administration

Properly defining compensation is a critical but often overlooked aspect of retirement plan management. In our latest 401(k)ompass episode, Lindsay Luketic discusses why compensation errors are one of the most common issues plan administrators face and how to address them effectively. Understanding the Plan’s Definition of Compensation Every retirement plan document defines compensation and specifies which payroll sources, such as bonuses, should be included or excluded. If not caught early, misalignments between the plan document and payroll practices can lead to costly and time-consuming errors. Common Pitfalls and the Importance of Compliance One of the most frequent mistakes involves handling…

Welcome to 401(k)ompass, a series of two-minute videos to help you manage your 401(k) more effectively by addressing current issues and challenges. It’s bonus season—are you certain you’re withholding from bonuses correctly? In this episode, Lindsay Luketic talks about one of the most frequent areas where mistakes happen: a plan’s definition of compensation. Not withholding from the proper payroll sources, like bonuses, can lead to plan errors that might become costly if not addressed. Don’t worry if this sounds familiar. Lindsay breaks down how these errors occur, why they matter and most importantly, how you can fix them before they…