Recordkeeper Performing Late ADP/ACP Testing

[khn]

Please tell me if this is reasonable. A certain (well-known ) recordkeeper has told a client that based on their history of not failing ADP/ACP testing, the testing, which they pay an extra fee for, cannot be scheduled for completion within the first 2 1/2 months of the plan year end. If they do end up needing refunds, the Plan will be responsible for the risk and responsibilities of any failure.

Am I wrong for thinking this is totally unacceptable?

[K2retire]

I've heard that before -- and I agree that it is totally unacceptable. I don't remember now who it was, but apparently they prioritize their testing according to plan size. If I were the sponsor of a small plan, I would be looking for a new recordkeeper ASAP.

[RatherBeGolfing]

Please tell me if this is reasonable. A certain (well-known ) recordkeeper has told a client that based on their history of not failing ADP/ACP testing, the testing, which they pay an extra fee for, cannot be scheduled for completion within the first 2 1/2 months of the plan year end. If they do end up needing refunds, the Plan will be responsible for the risk and responsibilities of any failure.

Am I wrong for thinking this is totally unacceptable?

Totally unacceptable. Run!

[ETA Consulting LLC]

If I were the sponsor of a small plan, I would be looking for a new recordkeeper ASAP.

I would be looking for a new recordkeeper, regardless of small or large. It it the same routine for testing a large plan and a small plan. When a large plan fails ADP, however, those corrective distributions can get pretty steep; and the 10% penalty goes up.

Plan Sponsors really have to asses what they're paying for. It's too often the case where they pay these large companies to tell them what they're not going to do.

But, hey, these are the types of service failures that often present chances for me to pick up a new client.

Good Luck!

[Belgarath]

An absolute disgrace. "We're going to charge you for a service that we won't perform in a timely fashion, and we're going to make you responsible for any adverse consequences that occur because we didn't timely perform the services for which we charged you in the first place..."

How do these people sleep at night?

[khn]

Thank you all for validating my anger:)

[Doghouse]

The service agreement between the sponsor and the provider should be examined closely.

[Lou S.]

Tell them no problem as long as they will prepare the 5330 at no charge and off set any admin fees by any excise tax owed for not getting it done in the 2.5 month window.

[austin3515]

I know what is going on here. The Plan is unprofitable and they actually hope you will leave.

[GMK]

... asses ... they're paying for.

Could it be that the truth is in this typo?

[ETA Consulting LLC]

... asses ... they're paying for.

Could it be that the truth is in this typo?

Assess. Lol