Jump to content

Document sponsor can correct users’ failures to adopt the document


Recommended Posts

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

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

Create an account or sign in to comment

You need to be a member in order to leave a comment

Create an account

Sign up for a new account in our community. It's easy!

Register a new account

Sign in

Already have an account? Sign in here.

Sign In Now
×
×
  • Create New...