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Posts tagged ‘Compliance’

Jan 14

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What you really need to know about the latest IRS procedure for fixing retirement plan mistakes

Benefitspro.com asked me to write about the new IRS Revenue Procedure. If you didn’t see it there, we are reposting it here on The Principal® blog. Article originally posted on benefitspro.com.

To err is human. To fix complex errors is, well, complex.

I’ve received several phone calls over the past couple of days about the recent revenue procedure issued by the Internal Revenue Service (IRS) that impacts the system for correcting retirement plan compliance mistakes, the Employee Plans Compliance Resolution System (EPCRS).

Mostly, the calls are coming from people who have read that the procedure—known as Internal Revenue Procedure 2013-12 or Rev. Proc. for short—somehow affects 403(b) plans. But the callers are struggling to understand how. They have found the Rev. Proc., and the summaries about the procedure, are overwhelming and highly technical. The fact is that the Rev. Proc. is highly technical because it covers a highly technical issue. Even the shortcut terminology—Rev. Proc., EPCRS—tends to make eyes glaze over.

So what exactly should a financial professional know about the compliance resolution system and the updated procedure? Read more

Nov 30

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What Do Cars and Retirement Plans Have In Common?

I think it’s a safe bet to say we’ve all paid a lot more attention to retirement plan fees in the wake of the new DOL (Department of Labor) disclosure requirements. This is true for 401(k)/403(b) plans and beyond. Fortunately (or unfortunately) we can’t avoid the topic!

It’s likely no one pays more attention than the plan fiduciary. After all—it’s their job to work with the service provider and financial professional to make sure the fees paid by the plan are “reasonable.” But what exactly does “reasonable” mean? Read more

Nov 9

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Everything You Never Knew about 403(b) Plans

Welcome to my blog! I look forward to posting (and interacting) regularly with you about issues affecting pension plans in the tax exempt sector.

To kick off my first post, I thought it would be timely to address some industry buzz.

Rumor has it that the DOL (Department of Labor) recently hired a lot of new field auditors, which could only mean one thing – more audits. I think it’s safe to say that more 403(b) plans will be put on the firing line as well. Just what we need, right? Well, a little work now and some knowledge may help, so keep reading.

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