When I\u2019m contacted by a plan sponsor needs help, I usually quote a flat fee and 9 out of 10 times, I\u2019ll get the client. Price is rarely the reason why a potential client won\u2019t hire me. Here is usually one reason why I don\u2019t get hired: I\u2019m cautious when it comes to self-correction.<\/p>\n
What does that mean? It means that when a p<\/a>lan sponsor has a glaring problem for quite some time that takes place over a few years and involved a lot of participants and a lot of money, I will recommend that the plan submit the plan to get the Internal Revenue Service\u2019s blessing through the Voluntary Compliance Program.<\/p>\n Case in point, I was contacted when I was at that semi prestigious law firm about a publicly traded bank with a big problem. It seems that it\u2019s Big 4 auditors failed to catch a big problem with the 401(k) plan for about 20 plus years. It seems that while the plan in operation excluded bonuses from compensation, the plan document didn\u2019t. Based on the amount of fixing the problem, I recommended that the plan should seek the IRS\u2019 blessing. They found an ERISA attorney who said they could self-correct. It would have been a nice gig at the time, but I didn\u2019t want to be the attorney who said they should have done self-correctionand the IRS would have had a different opinion on an audit.<\/p>\n There are times where you won\u2019t get hired, but when it\u2019s based on a plan sponsor not taking your advice, there is no loss there because you\u2019re sticking to your guns and not lowering your standards.<\/p>\n <\/span><\/p>","protected":false},"excerpt":{"rendered":" When I\u2019m contacted by a plan sponsor needs help, I usually quote a flat fee and 9 out of 10 times, I\u2019ll get the client. Price is rarely the reason why a potential client won\u2019t hire me. Here is usually … Continue reading