Los Angeles counsel Heather Abrigo was quoted in an HR Executive article titled, “Preparing for a Retirement-Plan Audit.” Willis Towers Watson surveyed more than 300 U.S. employers and found that nearly one third of employers have had their retirement plans audited by the federal government in the past two years.
The article discussed what employers should be aware of to avoid an audit in the first place and potential red flags during audits. While DOL investigations have been applying more scrutiny, Heather commented that she hasn’t seen nearly as many IRS audits as she previously did.
"The DOL has had so much guidance come out on fee disclosures," Heather said. "Deferrals are something they always look at regardless of why they are investigating you."
Late deferrals continue to be primary concern of DOL investigations. Heather notes that how you disclose the delinquent participant contributions is just as important as fixing the issue. Heather also highlighted the importance of knowledgeable fiduciary responsibility, noting that the DOL will want to confirm that the fiduciary received training.
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