The Problem
March 15 is a nightmare for plan administrators. Completing ADP/ACP non-discrimination testing by this deadline and completing the process of 401k compliance testing pose major challenges.
- Complex process with a lot of time required for data scrubbing before the calculations
- Sudden increase in workload even while continuing to manage the existing transaction volume
- Limited in-house resources and inability to quickly and temporarily scale up capacity
- Maintaining quality and accuracy while faced with these other challenges is extremely difficult
- Fines, penalties, and even plan disqualification due to delays or errors