Safeguard against plan disqualification under new IRS policy
Article Abstract:
The new policy of the Internal Revenue Service that protects employee benefit plan sponsors from disqualification for simple operational or administrative mistakes is a favorable development. The policy, otherwise known as 'administrative policy regarding sanctions,' now safeguards plans that had accidental errors, innocent misstatements or omission of facts and defective but unimplemented provisions. Likewise protected are those plans that had failed to adjust promptly to changes in tax regulations.
Publication Name: Journal of Compensation and Benefits
Subject: Insurance
ISSN: 0893-780X
Year: 1992
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IRS issues additional guidance on qualified plan correction methods
Article Abstract:
It is critical for employers to prevent their salary reduction savings plans, be they retirement or 401(k) plans, from disqualification and to prevent their plan sponsors from incurring monetary penalties for inadvertent errors in plan administration or failure of the plan document to comply with existing laws or actual plan administration. The IRS has fortunately issued several corrective schemes to help plan sponsors avoid disqualification and monetary sanctions.
Publication Name: Journal of Compensation and Benefits
Subject: Insurance
ISSN: 0893-780X
Year: 1999
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IRS multiemployer plan examination program
Article Abstract:
The Multiemployer Plan Examination Program was developed by the Internal Revenue Service (IRS) to allow IRS auditors to evaluate multiemployer plans and identify defects in the administration of said plans. The IRS has issued the Multiemployer Examination Handbook to be used exclusively for this purpose. Monetary penalties shall be imposed upon employers who are implementing defective retirement programs.
Publication Name: Journal of Compensation and Benefits
Subject: Insurance
ISSN: 0893-780X
Year: 1996
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