1. TOP 4 401(k) Plan Mistakes and how to fix them. James R. Griffin Jackson Walker L.L.P.

2. TOP 4 401(k) Plan Mistakes and how to fix them. Important: Tax Qualification 401(k) Plans must be tax-qualified: – In form – In operation

3. TOP 4 401(k) Plan Mistakes and how to fix them. Disqualification: Adverse Consequences Pay tax penalties Open to litigation by participants Violate loan covenants Lose creditor protection Withhold audit report for Form 5500

4. TOP 4 401(k) Plan Mistakes and how to fix them. Key Points to Remember: Tax Qualification Mistakes How can I find mistakes? What are the four most common errors? How can I fix them?

5. TOP 4 401(k) Plan Mistakes and how to fix them. How Can I Find Mistakes? Feedback from 401(k) recordkeeper – Annual testing reports – Phone calls, emails & letters Management letter from annual CPA audit of plan Internal compliance audit DOL investigation IRS audit

6. TOP 4 401(k) Plan Mistakes and how to fix them. What Are The Four Most Common Errors? Untimely adoption of plan amendments Untimely enrollment of eligible employees Errors in the definition of compensation Errors with loans and hardship withdrawals

7. TOP 4 401(k) Plan Mistakes and how to fix them. How Can I Fix Mistakes? Self-Correction ProgramSCP Voluntary Correction With Service Approval - (VCP) Audit Closing Agreement Program – Audit Cap

8. TOP 4 401(k) Plan Mistakes and how to fix them. Stay Informed Retirement News for Employers – Periodic email newsletter from IRS – Includes information about: New rules affecting retirement plans Retirement plan forms and plain language publications Retirement seminars geared toward employers and owners Developments from other federal agencies

9. TOP 4 401(k) Plan Mistakes and how to fix them. Visit this Web site to Subscribe http://www.irs.gov/retirement/article/0,,id=122823,00.html For link send email to: Jim Griffin jgriffin@jw.com 214-953-5827