Bush Retirement Plan Services

Plan Corrections

Any retirement plan can fall out of compliance because of changes in the complex rules and regulations of the Internal Revenue Service (IRS) and Department of Labor (DOL). Plan sponsors can unknowingly cause problems that must be corrected, such as not understanding the plan’s eligibility requirements or making distributions that are not authorized by the plan. When the sponsor fails to follow the plan’s terms, the plan can be disqualified, threatening the sponsor and participants with the loss of tax deductions on prior contributions.

The IRS has several correction procedures for resolving qualification failures in a qualified plan, all of which require additional employer contributions, penalties and fees assessed by the IRS and DOL.

Bush Retirement Plan Services works with sponsors to determine the nature and extent of the plan problems, and recommends the appropriate correction. We stay involved at every step of the procedure and make sure the correction is executed properly and promptly. If needed, we also represent the plan sponsor at IRS inquires.