Staff Employer Contributions Sitting in Owner's Account

[ratherbereading]

I have a plan with one owner (dentist) and 5 participants. Each year they do a profit sharing and a safe harbor contribution.  The money is at LPL Financial and each participant receives their own statement and they cannot direct their investments.  The dentist  prefunds the profit sharing and safe harbor contributions during the year by depositing the funds  into his own account.  Every other year it seems, they fail to transfer the participants' profit sharing and safe harbor amounts out of his account.

The participants are clueless, and in the meanwhile, the owner is getting an unfair advantage as fair as gains.  I have tried telling them they need to prefund it into a plan checking account, not into the owners account,  but so far they are ignoring me.  Any ideas on how I can convince them not to do this?

[ETA Consulting LLC]

54 minutes ago, CEW said:

Any ideas on how I can convince them not to do this?

I'm not being sarcastic, but you're asking whether there are any ideas on how to manage your client.

Good Luck!

[ratherbereading]

45 minutes ago, ETA Consulting LLC said:

I'm not being sarcastic, but you're asking whether there are any ideas on how to manage your client.

Good Luck!

Yes, I guess I am!

 

[Mr Bagwell]

CEW,

You could tell this dentist to get lost and find another provider.  And when he does, the new provider would guide him to proper procedures which the dentist would probably comply.  Very maddening!

I would go with blunt and to the point.  Like a root canal!

[Larry Starr]

Real simple: you need to do this or we resign.

[ratherbereading]

Thanks all!

[Kristina]

At what point, if any, would you contact the DOL?  Or give the employees a clue as to what is happening?

This is kind of a situation makes the hair stand up on the back of my neck.

[Larry Starr]

That is neither your job nor your responsibility.  The answer is NEVER.  You resign and just walk away.

[ratherbereading]

On ‎5‎/‎17‎/‎2018 at 5:36 PM, Larry Starr said:

That is neither your job nor your responsibility.  The answer is NEVER.  You resign and just walk away.

Not my call. I don't own the TPA for whom I work.

 

[PFranckowiak]

You could calculate the missed gains and ask him to transfer those to the participants accounts.

That way you have provided a correction, charge him for the calculation and if he refuses, you need to take it up with your boss.

[Larry Starr]

9 hours ago, CEW said:

Not my call. I don't own the TPA for whom I work.

 

Sheesh! The exact same answer applies to YOUR BOSS if it is his/her decision.  The answer is the same; your FIRM needs to walk away.