News & Analysis as of

Voluntary Compliance Benefit Plan Sponsors

Ary Rosenbaum - The Rosenbaum Law Firm P.C.

You don’t know unless you ask the IRS

A few months back, I was working with a 401(k) plan sponsor on a big Voluntary Compliance Program (VCP) issue. The issue was simple, the latest plan restatement (since 2019) improperly included bonuses to the definition of...more

Ary Rosenbaum - The Rosenbaum Law Firm P.C.

The problem of too much paper

First, there was the call for an Investment Policy Statement (IPS). Then advisors were touting the need for an Education Policy Statement (EPS). What next? ...more

Ary Rosenbaum - The Rosenbaum Law Firm P.C.

When you need a VCP application, make sure you cover all the errors

The Internal Revenue Service (IRS) Voluntary Compliance Program (VCP) is one of the best methods for retirement plan sponsors to come clean and cost-effectively fix their plan errors, rather than getting hammered with...more

Ary Rosenbaum - The Rosenbaum Law Firm P.C.

Make sure RMDs are made

In the past 35 years, it changed on who had to take out a required minimum distribution (RMD) from a qualified retirement plan. Thankfully, it hasn’t changed since 1997. So a person who is a 5% owner has to take out an RMD...more

Ary Rosenbaum - The Rosenbaum Law Firm P.C.

The Rosenbaum Law Firm Review - November 2019

Great 401(k) Participant Features That Can Land You In Plan Sponsor Hot Water. It can get you in a bad spot. A 401(k) plan is one of the great employee benefits. Within a 401(k) Plan, some options are truly beneficial to...more

Ary Rosenbaum - The Rosenbaum Law Firm P.C.

The half-empty look from an IRS agent

As a plan sponsor being investigated by an Internal Revenue Service (IRS) agent, there is one thing you might not be aware of. The IRS agent is there to ensure there has been voluntary compliance by you to the provisions of...more

Ary Rosenbaum - The Rosenbaum Law Firm P.C.

Don’t gamble for a DOL audit

The last two times I was in Las Vegas, I didn’t gamble a penny. I didn’t gamble because I hate to lose. Yet I see so many plan sponsors and plan providers gamble by not correcting a glaring compliance issue and play that...more

Ary Rosenbaum - The Rosenbaum Law Firm P.C.

Don’t ask for trouble with plan provisions

One of my biggest tasks as an ERISA attorney is helping plan sponsors out with voluntary compliance and self-correction programs. Many of these problems that have to be fixed are as a result of the plan document saying one...more

Ary Rosenbaum - The Rosenbaum Law Firm P.C.

Less than a year to mandatory 403(b) Restatement

With May here, plan sponsors and plan provider may not be aware of an Internal Revenue Service (IRS) deadline that isn’t that far off. All organizations that sponsor 403(b) retirement plans must restate their plan documents...more

Verrill

Revenue Procedure 2019-19: Enhancements to EPCRS are Great News for Plan Sponsors

Verrill on

Newly published Revenue Procedure 2019-19 modifies and supersedes prior IRS guidance regarding the Employee Plans Compliance Resolution System (EPCRS) to allow plan sponsors to self-correct an expanded number of problems that...more

Ary Rosenbaum - The Rosenbaum Law Firm P.C.

That’s not the way to be in the administration business

I have comes across quite a few third party administration (TPA) firms over the years and 95% of them are pretty good. Even if they make mistakes, they’ll own up to them and they happen to make a few mistakes....more

Verrill

Voluntary Compliance with ERISA Does Not Preclude Church Plan Status

Verrill on

The IRS has once again confirmed that an employee benefit plan maintained by a church or church-affiliated organization is not subject to ERISA unless the plan sponsor makes an affirmative written election to have ERISA apply...more

Ary Rosenbaum - The Rosenbaum Law Firm P.C.

The DOL is still targeting late deferrals

It should be the simplest thing to do, yet so many plan sponsor fails to do it. What I’m talking about is the late deposit of deferrals and it’s been the biggest reason I’ve seen why the Department of Labor (DOL) are auditing...more

Foley & Lardner LLP

Complying with Hardship Withdrawal Rules Makes Retirement Plan Administration Easy (Well, Easier, Anyway)

Foley & Lardner LLP on

In a February 2018 article, my colleague Kathleen Dreyfus Bardunias encouraged retirement plan sponsors to implement annual “operational checkups” in order to ensure their plans were administered in compliance with the plan’s...more

Ary Rosenbaum - The Rosenbaum Law Firm P.C.

The Rosenbaum Law Firm Review - March 2018

That Fiduciary Warranty Is Not Worth The Paper it's Printed On. They are pretty much worthless. A 401(k) plan sponsor is also a plan fiduciary and they have the responsibility to prudently run their plan. One major...more

Ary Rosenbaum - The Rosenbaum Law Firm P.C.

Get that late 5500 Filed

I used to have this recurring dream that I was back in college and it was my last semester. The dream was that there was this one class that I didn’t attend all semester and the finals were around the corner. Someone pointe...more

Ary Rosenbaum - The Rosenbaum Law Firm P.C.

The IRS Voluntary Compliance Program Is Like Your Parents

As a child, you’re usually told by your parents that they just want to hear the truth and that telling the truth is going to carry a far less punishment than if you lie and try to hide whatever bad thing you do. The...more

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