Mark Zaenger, in our Employee Benefits Group, assisted a manufacturing client with a private audit of qualified plan compliance due to changing controlled group issues involving the employers sponsoring a tax-qualified retirement plan. As a part of this audit, Mr. Zaenger evaluated the controlled group status of the plan’s various sponsoring employers and the impact of the failure of the third party administrator to identify the change in controlled group status. This failure resulted in incorrect non-discrimination testing, improper allocation of profit sharing contributions and annual reporting and disclosure errors. Nisen & Elliott, LLC’s assistance enabled the client to correct the errors before they became worse and communicate the corrections to the plan participants, protect the qualified tax status of the retirement plan using the IRS’s approved EPCRS correction program and fix reporting errors on the plan to limit late filing penalties.
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