Retirement Plan Design
If you are looking to build a new plan, or you are interested in reviewing your current plan document, participant communication materials and prior administration reports to determine if you meet legislation requirements guidance, or want to take advantage of newly available plan features, our professional staff can help you. RPA professionals have more than 200 combined years of experience in plan design and will work with you through the process of creating or restructuring your plan to complement your organization’s business strategy. At RPA, we understand that every organization is unique. We want to get to know you and your organization, and with that understanding, we can offer suggestions and recommendations that make sense for you. We look forward to working together and shaping a program that responds to your organizations business strategies, and specific needs. We offer a variety of qualified retirement plan alternatives and allocation formulas. Here are a few examples:
- 401(k) and 403(b) Plans
- 401(a) and 457 Plans
- Profit Sharing & Money Purchase Plans
- Defined Benefit Plans (DB)
- Cash Balance Plans
- New Comparability or Cross-tested
- Integration with Social Security formula
- Standard Profit Sharing
- Age Weighted formula
- Safe Harbor formulas
RPA can provide you with our pre-approved Prototype or Volume Submitter plan documents. In addition, our plan document services include the preparation of the Summary Plan Description (SPD) and all necessary administrative forms. In general, most qualified plans can rely on our IRS Approval Letter. However, if needed, we can submit your plan document to the IRS for a separate Determination Letter. It is our job to make sure that your plan remains in compliance with all Department of Labor (DOL) and Internal Revenue Service (IRS) regulations.
Our services can be tailored to meet your needs and business goals. From full administration to one-time consulting projects, RPA is here to ease the administrative burden of your plan. This could be as simple as on-line payroll data entry to your provider or as complicated as a voluntary correction program (VCP) submission to the IRS. All it takes to reach your goals is commitment and a well-designed retirement plan.
Because we are an independent company, we work with all platform providers, such as but not limited to, American Funds, Ameritas, John Hancock, One America, Cuna, Voya, Nationwide, Empower, and Transamerica. We can record-keep outside assets if you would like to use a provider and self-directed brokerage accounts or self-directed brokerage accounts alone. We will produce participant statements that combine both investment products. Keep in mind your choice of investment providers may affect your net administration costs.
We perform all necessary compliance tests annually or more frequently as needed.
We prepare the Form 5500, an annual informational tax return, and applicable Schedules, and Electronic Authorization Form each year. We will also prepare any necessary 1099-R and 1096 Forms in the event your investment provider does not offer this service.
We are serious about retirement plans. Plans can be complicated and RPA can help you to decipher plan document language to ensure it can be followed efficiently and accurately. Our consulting practice services can be used once or on going to provide specific compliance testing, review plan operations or help resolve plan problems.
Form 5500 Issues
The Form 5500 is due seven months after the end of the plan year. If an extension is filed prior to this due date, a two and one-half month extension can be granted. If you extend your business tax return, this extension also applies to the 5500 series filing. Returns filed after this time are considered late and are subject to substantial penalties of up to $250 per day with a cap of $150,000 per plan year. In the event you have 5500 series forms filed late in previous years, RPA, using the DOL’s delinquent filer voluntary compliance program (DFVCP) program, we will prepare the application and returns missing to avoid such penalties.
IRS & DOL Compliance
Retirement plans must follow their plan document and be restated periodically to incorporate all applicable laws. According to the IRS, plans are considered to be “late amenders” if not timely amended. When the terms of the plan are not followed, operational errors occur. For late amenders and/or operational errors, using the IRS guidelines for plan correction, we guide you through the process to correct these errors. This may involve self-correction, formal application to the IRS’s Voluntary Correction Program (VCP) or assistance during the compliance audit program (CAP).
Plan audits can be random, industry specific or based upon data submitted on a Form 5500. RPA can assist with the preparation in the event a plan is chosen for audit or provide a plan review prior to audit selection. We do have the ability to speak directly with the IRS with your permission. Please contact us as soon as you receive notice.