Kirsten Curry

You will want to review the QES offering. What does the offering say about who should be offered the QES opportunity and when (e.g. does the offering close after a certain time period)? Important to note, if 401k Plan monies were invested in the C Corporation are the monies being utilized by the LLC? This could result in a prohibited transaction depending on whether the LLC is a wholly owned subsidiary of the C Corporation and/or whether the activities of the C Corporation rise to the level of an Operating Company.

Well, this is no fun. Have already assisted 2 upset/frustrated clients who received these much delayed letters and believed we had dropped the ball, because you know, they don't tend to read the letters and its not necessarily easy for them to always understand the letters. I hope there aren't many, many more of these on the way.

I also say, "We do 401(k) Plans" and add "we are the compliance and government reporting folks" because yes, otherwise, the listener believes we sell investment products.

I supported a lot of these plans over time and can help with your questions. What needs to be disclosed depends in part on timing. How soon after the initial ROBS transaction (401k monies being invested into Corporation) did the owner hire employees? Did your client use a ROBS Promoter? If so, the ROBS Promoter should have provided a stock/QES offering notice which details how long the stock offering has to remain open, before its closed to any new investors. Those are a few things to look at. I would highly recommend that the stock offering be closed to new investors after a reasonable amount of time. Thereafter, the information that gets reported about the stock, on an ongoing basis, is generally limited to what you present to the accountholders invested in the stock (and what you report on Form 5500).