Our first piece of advice for audited plan sponsors? Don't panic.
Topic Archive: Plan Compliance
Service providers are judged by by many factors and one of the most important is managing to zero service issues. And considering how important plan compliance is, issues with plan compliance via a government audit is not considered a factor—until it is.
Retirement plan compliance is a big deal to the IRS. After all, the tax deductions that both plan sponsors and participants receive each year for contributions to retirement plans surpass deductions taken for charitable donations and health insurance premiums. With so much at stake, the IRS wants to be sure everyone is playing by the rules.
Contrary to what some people may think while writing out checks for penalty fees, the IRS doesn't actually want to find compliance issues in retirement plans.