Reviewing Your Employee Benefit Plan: Check it Out

1861b9e88b84fab4a0c4_KEN_BAGNER.JPG
Member in Charge, Employee Benefit Plan Audit Practice Group
1861b9e88b84fab4a0c4_KEN_BAGNER.JPG

Whether you are a business owner or a senior employee with management responsibilities, understanding some of the issues regarding your organizations biggest off balance sheet risk, your employee benefit plans, can be very helpful for you. Taking into consideration the significant number of investment failures occurring today within Benefit Plans, the wide range of investment alternatives, the complexity of the tax laws governing the qualifications of the Plan and the fiduciary responsibilities of the Trustees, it is all the more critical that any benefit plan is adequately reviewed and due diligence is conducted in order to assure compliance and avoid or minimize future liabilities.

Although an audit is typically performed only when a company has more than 100 plan participants, nonetheless it can be very advantageous to conduct a review even if the Plan is below the 100 employee threshold.   This is especially true because Third Party Administrators (TPA) do not perform a detailed review of your plan leaving your Company vulnerable to noncompliance in a wide variety of scenarios.

If you are the business owner, you can decide to be proactive and take steps to protect your Company. As such, you might agree to a course of action that includes a review of the Company Plan, looking specifically at some key issues that commonly create the most vulnerability, such as:

Sign Up for E-News

  • Fiduciary Duties
  • High Plan Fees
  • Plan Document Compliance
  • Funding Issues
  • Errors in Contributions
  • Auto Enrollment
  • Hardship Withdrawals
  • Allocation of the Forfeitures Account
  • Definition of Compensation
  • Internal Controls
  • Requirements of the DOL/IRS 
  • Plan Design
  • Timely Employee Communications
  • Enrollment Packet
  • Employer Match
  • Unnecessary People in the Plan
  • Loan Policy
  • Investment Policy
  • Discrimination Testing
  • Amendments
  • Impermissible Plan Withdrawals

 

This is an extensive list, and it is easy to see how these violations can occur, even when they are unintended.

If the DOL or IRS comes knocking at the door, and the Organization hasn’t had a checkup (recognizing that the TPA is not responsible for this) – who will ensure they are operating in compliance with DOL regulations and IRS Code? If there is anything that is overlooked, the company may unintentionally be exposed to large fines and penalties.   

We suggest that a review, whether mandated or not, can help the Company reap benefits similar to those gained by purchasing an insurance policy. 

This column will provide business advice and new  perspectives on business news, emerging trends and traditional topics impacting individuals, family businesses and professional service providers across the tri-state area.

The opinions expressed herein are the writer's alone, and do not reflect the opinions of TAPinto.net or anyone who works for TAPinto.net. TAPinto.net is not responsible for the accuracy of any of the information supplied by the writer.

TAP Into Another Town's News:

You May Also Be Interested In

Sign Up for E-News

Livingston

$100 OFF per Week for Summer Camp Now!

July 12, 2018

Guerrero Marital Arts is now offering an 8-week summer camp for summer 2018!

Pick which weeks you want!

Camp Weeks are:

July 16, July 23, July 30, August 6, August 13, August 20, August 27

Includes the following:

Fitness
Fun (through Sports, Play and Games)
Field Trips (may cost extra)
Life Lessons
Reading Time
Martial Arts
A great place to ...

20% Off Purchases at Livingston Pharmacy

LIVINGSTON, NJ - Livingston Pharmacy & Surgical Supplies is offering 20 percent off your entire entire purchase, EXCLUDING prescription co-pays, if you just mention TAPinto Livingston OR display a TAPinto Livingston logo or display the website on your phone or device.

Livingston Pharmacy & Surgical Supplies, located at 91 E. Mount Pleasant Ave. has established itself as a retail ...

Upcoming Events

Carousel_image_f509c18dfe9bf7382799_whole_foods_flyer_west_orange_2018_july_16

Mon, July 16, 1:00 PM

Whole Foods Market - West Orange, West Orange

West Orange Emergency Blood Drive - 1st 30 donors ...

Giving Back Health & Wellness

Carousel_image_b20a8250917845925251_mini_magick20180715-93558-18g5bx1

Tue, July 17, 5:00 PM

Caldwell University Alumni Theater, Caldwell

Public Invited to Essex County Opioid Use ...

Health & Wellness

Tue, July 17, 7:00 PM

Livingston Public Library, Livingston

Organically Yours: a wellness experience with ...

Newark Lures Amazon With $1 Billion Payroll Tax Incentive

July 14, 2018

NEWARK, NJ - Amazon will get a payroll tax break at a cost of $1 billion to the city should the company open its second headquarters in Newark, according to one of two ordinances approved by the Newark City Council council to sweeten the deal for the corporate giant and stand out among other locations vying for Amazon’s so-called HQ2.

“The City Council has brought Newark a ...

Public Invited to Essex County Opioid Use Prevention Task Force Meeting

July 15, 2018

CALDWELL, NJ — All Essex County residents, mayors and councils, law enforcement members, school officials, clergy members, civic organizations and more are invited to join in the next Essex County Opioid Use Prevention Task Force meeting on Tuesday at 5:30 p.m. to discuss how the Essex County communities can join work together to eradicate this epidemic.

The meeting will be held at the ...

Extra Time

It was close to 70 minutes into the match and I had to go to the bathroom.  Badly.

As fans watching the World Cup know too well, bathroom breaks are a serious dilemma, especially for those who don’t have a TV in the loo.  This biological necessity is exasperated by beer, which during World Cup matches also fuels a strong propensity to throw chairs and instigate riots.

5 Simple Ways to Save Water this Summer

According to the L.A. Times, the average American uses an estimated 98 gallons of water EACH day.  

Here are five simple ways you can save water, to help you conserve water this summer and take some pressure off of your drains.

1. Unless you are using it, turn the faucet off. How many of us still leave the water running while we shave or brush our teeth?According to ...