Spring is in full swing, and while you’re busy dusting off shelves and decluttering closets, don’t forget about giving your 401(k) or 403(b) plan a little TLC too! Just like your home, your retirement plan needs periodic attention to ensure it’s in top shape. So, grab your metaphorical mop and bucket, because it’s time for some spring cleaning tips tailored just for plan sponsors:

1. Keep Those Notices Flowing
Just like you wouldn’t skip dusting those hard-to-reach corners, make sure you’re providing your employees with all the necessary notices. From fee disclosures to investment options, keeping everyone informed is not only courteous but essential for maintaining your plan’s tax-favored status.

2. Encourage Participation
Ever heard the saying ‘the more, the merrier’? Well, it applies to retirement plans too! If your participation rates are looking a bit lackluster, consider implementing strategies like auto-enrollment or employer matching to get more employees on board. After all, retirement planning is a team effort.

3. Organize Your Documents
Just as you’d tidy up your paperwork at home, ensure your plan documents are neatly organized and easily accessible. Whether it’s a recent amendment or a decades-old agreement, having everything in one electronic folder can save you time and headaches down the line.

4. Set Your Policies Straight
Think of your plan’s policies and procedures as the backbone of your retirement strategy. From participant loans to deferral elections, having clear guidelines in place helps maintain compliance and ensures smooth sailing for all involved.

5. Conduct a Plan Audit
Performing a comprehensive plan audit can provide valuable insights into the effectiveness of your retirement plan administration. Consider engaging an independent third-party firm to review your plan’s operations, identify areas for improvement, and ensure compliance with regulatory requirements.

And now, for some bonus tips to really spruce things up:

• Get Those Contracts Signed: Make sure you have all your service provider contracts on file and up to date. If you’re missing any, don’t hesitate to reach out to your trusted retirement plan expert for assistance.

• Welcome Roth Contributions: With a new generation entering the workforce, offering Roth after-tax contributions is more important than ever. Ensure your plan embraces this feature to cater to the evolving needs of your employees.

• Craft an Investment Policy Statement: If you haven’t already, consider drafting an Investment Policy Statement (IPS) to guide your plan’s investment decisions. Your advisor can lend a hand in creating one tailored to your needs.

• Keep Tabs on Fees: Last but not least, don’t forget to keep an eye on those fees! As the plan sponsor and fiduciary, it’s crucial to benchmark your plan’s fees regularly and document the process for peace of mind.

So, as you dive into your spring cleaning routine, don’t neglect your retirement plan. With a little attention and care, you can ensure it’s shining bright for years to come. Happy cleaning!