Fix Retirement Plan Problems Before You’re Audited

If you have a qualified retirement plan for your business, it must be operated in accordance with the law. This includes keeping documents up to date, making required minimum distributions, and avoiding discrimination. Many errors can be corrected through the IRS’s Employee Plans Compliance Resolution System (EPCRS). Now the IRS has a pre-examination pilot program in which it will send a letter to a plan sponsor regarding problems. There’s 90 days to respond. If you don’t, the IRS may initiate a full examination of the plan, which could result in penalties and even plan disqualification. #IdeaoftheDay

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