Navigating Compliance: A Professional Guide to Retirement Plan Regulatory Reviews

A retirement plan is a promise. It holds paychecks deferred, employer contributions, and decades of compounding on behalf of workers. When regulators review a plan, they are checking whether that promise is being kept, and whether records back it up with clarity and control.

This guide walks through what reviewers expect to see and how to prepare without panic. You will learn what triggers a review, which documents matter most, and how to build simple routines that keep you ready year-round. The aim is practical confidence - not guesswork.

Understanding Regulatory Reviews

Regulatory reviews exist to protect participants and to keep plans operating by the book. They focus on whether fiduciaries followed the plan document, ERISA, and the Internal Revenue Code. They also test if the numbers in filings reflect reality.

Think of the review like a quality check on your controls. It is not only about errors - it is about how well you prevent errors from happening. Clear policies, consistent procedures, and timely corrections go a long way.

Preparation is strongest when it is routine. If you gather evidence monthly and reconcile key balances, a review becomes a confirmation step rather than a scramble.

What Triggers A Review

Reviews may be risk-based or event-driven. Sudden swings in participant counts, late contributions, or unusual transactions can raise attention. New plan features or mergers can invite a closer look.

Some triggers are within your control, like the timeliness of deposits or the accuracy of census data. Others are not, such as random selection. Either way, readiness looks the same - well-organized records and tested controls.

Use past findings as a roadmap. If a prior review noted weak documentation, build a checklist and proof of completion. That discipline reduces both findings and stress.

Core Documents You Must Maintain

Your plan document and all amendments set the rules. Summary plan descriptions, adoption agreements, and trust agreements show how those rules are communicated and applied. Keep executed copies together with effective dates and signatures.

Testing support is equally important. Maintain nondiscrimination testing, coverage testing, and top-heavy analyses alongside workpapers. Store payroll tie-outs that show how deferrals and matches bridge from gross pay to plan deposits. In many cases, a formal 401(k) audit will ask for these first, so having them current saves days. Add a short index that points to each item by year.

Retention matters. Keep records as long as needed to confirm eligibility, contributions, and distributions. If you change providers, confirm that historical data migrates in usable form, not just as PDFs.

Fiduciary Roles And Responsibilities

Every plan has named fiduciaries. Their duties include acting solely in the interest of participants, following governing documents, and paying only reasonable plan expenses. Minutes and decisions should reflect that standard.

Clarity reduces risk. Define who approves fees, who signs filings, and who reviews service provider reports. If a person has several roles, document how conflicts are avoided.

Training keeps responsibilities real. Provide short annual refreshers, record attendance, and share updates when rules change. A simple one-page job aid can anchor daily choices.

Controls Over Plan Operations

Controls are the habits that make compliance predictable. They include reconciliations, approvals, segregation of duties, and system checks. Document each control with its frequency, owner, and evidence.

Design controls to follow the data. Start at payroll, move through the recordkeeper, and end with the trustee. At each handoff, tie totals and sample details to ensure completeness and accuracy.

When a control fails, note the cause, correction, and prevention. Regulators understand that issues happen. What matters is how fast you detect them and how well you fix the root.

Eligibility, Enrollment, And Contributions

Eligibility rules drive who can join and when. Review them against actual hire dates, service hours, and rehire situations. Keep exception logs for employees who opted out or were auto-enrolled later.

Deferrals and employer contributions must match plan terms. Reconcile per-pay-period totals to the recordkeeper and test a small sample back to pay stubs. Late deposits should be rare and well-explained.

Census data is the backbone of testing and allocations. Validate Social Security numbers, dates of birth, and compensation definitions. A quarterly data scrub is easier than a year-end cleanup.

Investments, Fees, And Disclosures

Investment lineups require prudent selection and monitoring. Keep committee minutes that show you reviewed performance, fees, and benchmarks. Note actions taken when a fund lags or changes strategy.

Fee reasonableness is not a one-time task. Compare provider invoices to agreements and share fee disclosures with participants as required. If the plan pays fees directly, record the approval trail.

Disclosures build trust. Confirm that notices are timely, readable, and consistent with plan operations. Store proofs of delivery - electronic logs, mail confirmations, or portal screenshots.

Reporting, Filing, And Deadlines

Calendar discipline is key. Build a filing calendar with owners, due dates, and reminders. Include plan year-end, testing dates, audit timelines, Form 5500 steps, and distribution tax forms.

Tie each filing to support. For the annual return, reconcile beginning and ending balances, contributions, and distributions. Retain final signed versions and transmission acknowledgments.

If you need an extension, document the reason and the approved new date. Extensions help, but they should not become a default habit.

Working With Auditors And Advisors

Treat advisors as part of your control environment. Share your calendar, provide requested items in organized folders, and ask for feedback on process gaps. Good preparation shortens fieldwork.

Respond to requests with context. If a number moved, explain what changed and why. Provide the policy, the data, and the calculation that tie together. That narrative reduces back and forth.

Use closing meetings to capture improvements. Assign owners and dates to each action item. Follow up in 30 and 90 days to confirm progress and update your records.

A review is a checkpoint, not a verdict. With strong controls, clear documents, and steady habits, your plan can face scrutiny with calm. The work you do each month builds that confidence.

Build a simple plan: know your rules, keep your records, and test your process. When a review comes, you will already have the story, the support, and the team to tell it well.