“Just wait until a bunch of 401(k) plans are found to be “non-compliant”.”
They are - everyday. The EBSA auditors will cite plans for being in violation of various provisions of ERISA. If they can cite for a prohibited transaction - usually a Mickey Mouse error - they impose ERISA section 502(l) penalties which are 20% of the amount involved and automatically go up to 100% of the amount involved if not paid within 100 days.
The numbers will drastically incresae after July 1.