DOL Formal Notices of Rejection: What to Expect if You Receive One

Formal Notice of Rejection (NOR) letters were recently sent by the Department of Labor (DOL) to over 300 plan administrators for failing to attach an audit report to their 2008 Form 5500. Currently, these notices were sent to plans deemed to be large based on the size of the plan’s assets. A second round of …

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Fraud in a 401k Plan?

Some people think that 401k plans have little exposure to fraudulent activity.  The truth is, whenever there is an incentive, the opportunity, and the rationalization to commit fraud, then fraud should definitely be considered by your Company. The following risks, and mitigating recommendations, will be helpful to the following persons (but not limited to1): • Director …

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Is an ESOP Right for You?

An employee stock ownership plan (ESOP) is a qualified retirement plan that invests primarily in employer stock.  Let’s look at a few of the pros and cons of an ESOP. Pros Contributions to an ESOP are expenses for the contributing corporation for tax purposes. ESOP companies are less likely to be disposed of by sale, …

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