Since August 9, lawsuits have been filed against 9 different universities for various ERISA claims. For about ten years, 401k litigation has been going on and now eager lawyers are extending it over to 403b plans. Columbia, Emory, MIT, NYU, Yale, Duke, Johns Hopkins, UPenn, and Vanderbilt now find themselves forced to defend the management of their 403(b) plans in court. Could you be next?
Plan sponsors know that there are more liabilities and regulations to worry about than ever before. There are constant concerns about IRS rules, fiduciary responsibilities, and tax law changes. Failure to comply with regulations can be an expensive disaster, with the ever-looming threat of losing your plan’s qualified status.
April 30, 2016, was the IRS deadline for employers to restate their 401(k), profit-sharing, or other defined contribution (not including 403(b) plans) retirement plans. Failure to comply with new regulations could result in significant IRS fines as well as loss of a plan’s qualified status.
Serving as the administrator of a 403(b) plan is no simple task, and auditing is just one of the many complex duties required. An audit can help ensure the correct amount of money will be available to pay the benefits to the participants while simultaneously keeping the plan sponsor honest regarding the finances of the company.
Since the auditing changes regarding 403(b) plans changed in 2009, it is essential for plan sponsors to know what to look for when selecting an independent auditor for their retirement plan. Once you understand whether or not your retirement plan requires an audit and what type of audit is most appropriate for your situation, it’s time to find an auditing firm that meets your needs. It’s important to select a trustworthy and experienced audit firm.