Peter Gulia Posted April 5, 2016 Share Posted April 5, 2016 The Internal Revenue Service announced a new correction program under which a preapproved documents sponsor may cleanse many users failures to adopt the document. https://www.irs.gov/Retirement-Plans/New-Program-Allows-Providers-of-Pre-Approved-Plan-to-Correct-Missed-Deadlines If a document sponsor has only 20 plans to cleanse, the minimum fee of $10,000 averages to $500 per plan, which is the VCP fee for a super-micro plan. But if a recordkeeper has 10,000 plans to cleanse, the maximum fee of $50,000 averages to $5 per plan. What do BenefitsLink mavens think about this? Peter Gulia PC Fiduciary Guidance Counsel Philadelphia, Pennsylvania 215-732-1552 Peter@FiduciaryGuidanceCounsel.com Link to comment Share on other sites More sharing options...
ETA Consulting LLC Posted April 5, 2016 Share Posted April 5, 2016 I don't think about it too much :-) Just kidding... I, honestly, would like to see a case where this becomes beneficial to a document sponsor or service provider. I imagine it would be some large scale operation where a provider is tasked with restating thousands of plans and may miss by 1000 or so. I cannot see it benefiting a boutique TPA firm. Just my thought. Good Luck! CPC, QPA, QKA, TGPC, ERPA Link to comment Share on other sites More sharing options...
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