Investment problems could lead to lawsuits by participants, difficulties with the DOL or other severe consequences. Nondiscrimination testing is only one dangerous area for which special expertise is required. Employers should not assume that the work of a third party administrator is correct and should review it. Employers should review records periodically. Poor communication with employees could necessitate additional employer contributions to satisfy compliance requirements, jeopardizing the desire of the employer to continue the plan.
Expenses can arise from any of the five areas mentioned above.
Employers should be cognizant of all expenses when plans are established and make provision for their periodic review. High or undisclosed expenses could endanger the plan's success. Our web site home page .