Top 10 employee benefits compliance and reporting concerns
Employers can stay on the right side of regulators by complying with laws and regulations governing employee benefits. As the regulatory landscape changes, plan sponsors and administrators who keep pace with new requirements and filings prevent errors and problems down the road. CliftonLarsonAllen LLP offers these Top 10 Employee Benefits Compliance and Reporting Concerns as a tool or aid for keeping plan administration on the straight and narrow.
1) ROBS: Rollovers as business startups
Entrepreneurs are popping up all over as companies downsize, retirees start businesses and job dissatisfaction leads employees to strike out on their own. Many new business owners are using retirement assets to fund their start-ups. Releasing retirement funds can have serious consequences for employers and plan participants, however. Even when handled properly and with filings of IRS Forms 1099-R and 5500, such transactions may be considered questionable and discriminatory. They can trigger plan disqualification and adverse tax consequences for the employer and the entrepreneur, and can be quite costly to correct.
