Definition
The person or party responsible for handling the day-to-day administrative functions of the plan.
Responsibilities of the plan administrator include
- maintaining plan records,
- preparing reports,
- provide a written explanation to any recipient of an eligible rollover distribution
- perform any required withholding from distributions and send the withheld amounts to the IRS as income tax withholding to be credited against the payee’s taxes. For instance, if an eligible rollover distribution is not processed as a directed rollover, the plan administrator is generally required to withhold 20% for federal taxes.
- process distribution requests
Referring Cite
Plan’s adoption agreement
Additional Helpful Information
The plan administrator is usually the employer, unless the employer farms out the administrative responsibilities to another party.