The cost of correcting plan errors can be expensive. It can be expensive through corrective contributions and it certainly can be expensive through legal costs.<\/p>\n
I met an advisor who was discussing a very large problem that a plan sponsors was going through. The plan sponsors was sold a bill of goods by the previous advisor and the need to develop a new 401(k) plan. Of course, the only problem is that for years after the plan was established. Form 5500s weren\u2019t completed and filed.<\/p>\n
So the new advisor is giving me the whole list of problems and told me that he was advised that legal fees would be about $75,000. There is no way in heck that those legal fees could be that high. I could probably handle that for a 1\/3 of that proposal.<\/p>\n
The point here is that legal fees to an ERISA attorney are part of the game, but like any other plan cost, they should be shopped around.<\/p>\n
<\/span><\/p>","protected":false},"excerpt":{"rendered":" The cost of correcting plan errors can be expensive. It can be expensive through corrective contributions and it certainly can be expensive through legal costs. I met an advisor who was discussing a very large problem that a plan sponsors … Continue reading