{"id":471,"date":"2011-05-16T15:23:05","date_gmt":"2011-05-16T19:23:05","guid":{"rendered":"http:\/\/therosenbaumlawfirm.com\/blog\/?p=471"},"modified":"2011-05-16T15:23:05","modified_gmt":"2011-05-16T19:23:05","slug":"how-to-spot-a-troubled-retirement-plan-from-a-distance-or-a-form-5500","status":"publish","type":"post","link":"https:\/\/therosenbaumlawfirm.com\/blog\/?p=471","title":{"rendered":"How To Spot A Troubled Retirement Plan From A Distance or a Form 5500"},"content":{"rendered":"

Sometimes you can spot a poorly run retirement plan from a distance, sometimes it\u2019s just as easy as reading their Form 5500. Whether you are a plan sponsor, a financial advisors, and\/or third party administrator looking for new clients, you can gauge whether a plan is going through problems just by reading their Form 5500.<\/p>\n

Here are some things to spot:<\/p>\n

    \n
  1. The Form 5500 admits it has a serious error (prohibited transaction, no ERISA bond, later 401(k) deferral deposits.<\/li>\n
  2. If the plan is a defined benefit plan, the plan is severely underfunded.<\/li>\n
  3. The plan sponsor has both a money purchase and profit sharing plan. Unless they benefit different groups of employees, plans should have been merged in 2002.<\/li>\n
  4. If the plan is a 401(k) plan, it\u2019s on an insurance company provider platform and plan assets are more than $2 million.<\/li>\n
  5. The broker of record is getting a hefty commission that is not reasonable by what the market dictates (i.e, % compared to plan assets).<\/li>\n
  6. The information on Schedule C looks less than complete (especially compensated received directly or indirectly amounts).<\/li>\n
  7. The plan is paying too much in administrative fees and auditing (if the plan requires one).<\/li>\n<\/ol>\n

    <\/span><\/p>","protected":false},"excerpt":{"rendered":"

    Sometimes you can spot a poorly run retirement plan from a distance, sometimes it\u2019s just as easy as reading their Form 5500. Whether you are a plan sponsor, a financial advisors, and\/or third party administrator looking for new clients, you … Continue reading →<\/span><\/a><\/p>\n

    <\/span><\/p>","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":[],"categories":[5,1],"tags":[],"_links":{"self":[{"href":"https:\/\/therosenbaumlawfirm.com\/blog\/index.php?rest_route=\/wp\/v2\/posts\/471"}],"collection":[{"href":"https:\/\/therosenbaumlawfirm.com\/blog\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/therosenbaumlawfirm.com\/blog\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/therosenbaumlawfirm.com\/blog\/index.php?rest_route=\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/therosenbaumlawfirm.com\/blog\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=471"}],"version-history":[{"count":1,"href":"https:\/\/therosenbaumlawfirm.com\/blog\/index.php?rest_route=\/wp\/v2\/posts\/471\/revisions"}],"predecessor-version":[{"id":472,"href":"https:\/\/therosenbaumlawfirm.com\/blog\/index.php?rest_route=\/wp\/v2\/posts\/471\/revisions\/472"}],"wp:attachment":[{"href":"https:\/\/therosenbaumlawfirm.com\/blog\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=471"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/therosenbaumlawfirm.com\/blog\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=471"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/therosenbaumlawfirm.com\/blog\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=471"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}