Jump to content

Oversight of Governmental Plans


Recommended Posts

But your second question needs an answer!  "Are Governmental DC".. (or DB for that matter) ... "ever audited?"  I'll add to that and ask:  Has an enforcement action by the IRS as a result of an audit of a governmental plan ever been challenged in court and maybe a judicial decision rendered?

Link to post
Share on other sites
1 hour ago, Susan L. said:

But your second question needs an answer!  "Are Governmental DC".. (or DB for that matter) ... "ever audited?"  I'll add to that and ask:  Has an enforcement action by the IRS as a result of an audit of a governmental plan ever been challenged in court and maybe a judicial decision rendered?

Yes, we have seen governmental plans audited. The motivation to challenge IRS actions is limited by the fact that the IRS is generally willing to accept a settlement that is far less costly than disqualification (and any applicable excise taxes). 

Link to post
Share on other sites

With the work I do with gov't DB & DC plans it appears to me that these plans have no fear of being subject to a "real" audit.  Also from my experience, the people (plan sponsor/administrator) overseeing these plans know full well they are not in compliance with various IRS regulations but don't seem to care because they are not going to get caught.  Just my two cents.  

Link to post
Share on other sites
2 hours ago, mctoe said:

With the work I do with gov't DB & DC plans it appears to me that these plans have no fear of being subject to a "real" audit.  Also from my experience, the people (plan sponsor/administrator) overseeing these plans know full well they are not in compliance with various IRS regulations but don't seem to care because they are not going to get caught.  Just my two cents.  

For a long time, that was true.  Unless a governmental plan committed such egregious violations that they turned up on the front page of the newspaper, they didn't get audited.  But we're involved in one at the moment, in which the IRS is alleging violations of minimum distribution requirements.

  • Like 1
Link to post
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...