Compliance Resolution and Restoration


Compliance Resolution and Restoration

Compliance can mean the difference between maintaining or losing qualified plan status. And in 2019 alone, more than $2.5 billion in fines were collected for plan failures and non-compliance issues. Sponsors understand, but may not have the expertise and bandwidth to address these issues before they start, or resolve them once they are underway. With those kinds of stakes, it’s important to have a strategic partner who truly understands every compliance resolution and restoration nuance inside and out.

That’s where FuturePlan comes in. We have a proven record of resolving compliance issues efficiently and cost effectively. With one of the largest ERISA teams in the industry, who have deep relationships with the IRS and Department of Labor, we also keep ahead of all compliance changes on the horizon. In particular, the passing of the SECURE Act has brought increased fines and the scaling back of voluntary compliance programs.

FuturePlan seamlessly partners with sponsors to navigate this complex landscape, potentially saving the sponsor tens of thousands of dollars, and ensuring the healthiness and success of the plan for all participants.

Do you have a client who could benefit from our compliance resolution services?

As determined by the IRS, below are the top ten failures found in the voluntary correction program. FuturePlan has a team of experts ready to address every one:

  1. Failure to amend the plan for tax law changes by the end of the period required by the law
  2. Failure to follow the plan’s definition of compensation for determining contributions
  3. Failure to include eligible employees in the plan or the failure to exclude ineligible employees from the plan
  4. Plan loans that don’t comply with IRC 72(p)
  5. Impermissible in-service withdrawals
  6. Failure to satisfy IRC 401(a)(9) minimum distribution rules
  7. Employer eligibility failure
  8. Failed ADP/ACP nondiscrimination tests under IRC 401(k) and 401(m) not corrected in a timely manner
  9. Failure to properly provide the minimum top-heavy benefit or contribution under IRC 416 to non-key employees
  10. Failure to satisfy the limits of IRC 415