Lest you think that the IRS is just out to catch mistakes and run up revenue from fines and penalties, here are a few simple and straightforward ways to stay out of trouble, courtesy of the agency:
• Common Mistakes During Plan Audits
• Whether IRS Loan Limits Apply to All Plans
• Late Deposit of Salary Deferrals — Fixing Common Plan Mistakes
Smart plan advisors make friends at their local DOL and IRS offices for two reasons. First, when trouble comes to one of their plans — and it will — there’s already a relationship in place, which may help advisors get the benefit of the doubt. And second, advisors can leverage these professionals to conduct local meetings and seminars.
With 75% of plans run by advisors with fewer than five plans under management, do you blame auditors and government officials for being cynical about the quality of representation? If you’re not one of those advisors who Washington loves to use as a bad example, what are you doing to differentiate yourself?
