What is not a function of electronic transactions as per IRS Guidelines in retirement plans?

Establishing annual plan audits is not considered a function of electronic transactions as per IRS Guidelines in retirement plans. Electronic transactions are primarily focused on facilitating day-to-day administrative functions and participant interactions within retirement plans. This includes activities such as enrolling participants, allowing employees to designate contribution rates, and designating beneficiaries. Each of these functions can be efficiently handled through electronic systems that provide immediate processing and updates to participant accounts.

In contrast, annual plan audits are more complex and involve a thorough review of the retirement plan's operations, financial statements, and compliance with applicable regulations. These audits require methodologies that go beyond the scope of what electronic transaction processing typically entails, as they involve a comprehensive assessment conducted by qualified auditors rather than routine administrative functions. Thus, the nature of establishing annual plan audits separates it from the direct electronic transactional capabilities provided by IRS guidelines.