January is when compliance problems either get fixed—or get buried until they resurface as penalties later in the year. Employers that address compliance early reduce risk, avoid last-minute filings, and stay in control.
Here’s what should be happening right now.
Why January Matters for Compliance
Compliance issues don’t resolve themselves.
Anything left unaddressed from last year carries into audits, filings, and enforcement actions.
January is the best time to correct gaps while options are still available.
Review What Didn’t Get Finished Last Year
Start by identifying open items:
-
Form 5500 filings are still pending or filed under extension
-
Errors in participant counts or plan details
-
Plan changes that were never documented
Unresolved filings can trigger penalties and enforcement actions.
What happens if you don’t file Form 5500 explains the risks of leaving issues unresolved.
Confirm ERISA Plan Documents Are Current
Your plan documents must match how benefits are administered.
Confirm that:
-
Summary Plan Descriptions reflect current benefits
-
Wrap documents include all active plans
-
Distribution records are maintained
Failure to maintain proper documentation is a common compliance issue.
Recognizing Summary Plan Description distribution requirements outlines what employers must provide and when.
Non-Discrimination Compliance Review
Employee benefit plans must comply with federal non-discrimination requirements to ensure benefits are offered fairly and consistently to all eligible employees. These rules are intended to prevent plans from favoring certain employee groups or improperly excluding participants.
Employers should periodically review benefit eligibility, contribution structures, and plan design to confirm alignment with ERISA and IRS requirements. Even unintentional inconsistencies can create compliance exposure if they are not identified early.
Non-discrimination issues are often uncovered during Form 5500 preparation or during an audit, making early review an important part of staying compliant in 2026.
Non-discrimination testing helps employers identify and correct plan design issues before they lead to penalties or audit exposure.
Lock in Your Form 5500 Strategy Early
Waiting until spring creates unnecessary risk.
In January, employers should:
-
Identify which plans require Form 5500 filings
-
Verify plan numbers, EINs, and participant data
-
Schedule preparation instead of reacting later
Early preparation reduces errors and delays.
Why employers choose BC2 to prepare Form 5500 filings explains the benefits of proactive filing support.
Get ACA Reporting Organized
ACA reporting pressure builds quickly.
Now is the time to:
-
Confirm full-time employee tracking is accurate
-
Resolve inconsistencies in coverage offers
-
Prepare for 1094 and 1095 reporting
Many issues are discovered after submissions.
ACA reporting deadlines and compliance risks highlight why early review matters.
Organize Documentation for Audit Readiness
Audit readiness starts with the organization.
Employers should:
-
Centralize plan documents and amendments
-
Store prior filings and notices together
-
Maintain proof of required disclosures
Being audit-ready reduces stress and response time.
What to expect during a DOL audit underscores the importance of preparedness.
What Proactive Employers Are Doing in 2026
Employers staying compliant are:
-
Fixing issues early instead of reacting
-
Planning filings ahead of deadlines
-
Using specialists to reduce risk
Compliance is easier when it’s managed consistently.
How BC2 Helps Employers Stay Compliant
BC2 supports employers with:
-
Form 5500 review and preparation
-
ERISA plan document updates
-
ACA reporting support
-
Compliance organization and audit readiness
Our focus is on resolving issues early and preventing repeat problems.
Start [year] Compliant
January is the best opportunity to reset compliance the right way.
BC2 helps employers fix issues now—before they become costly problems later.
