Compliance August 31, 2012

IRS Adds Session for EPCRS Phone Forum

The Internal Revenue Service (IRS) announced its plan phone forum about fixing 403(b) plan mistakes is full.
Reported by

An 11 a.m. session has been added for the retirement plans phone forum, “EPCRS: Correction of 401(k) Plan Mistakes,” for September 7. (See “IRS to Hold Forum About Correcting 401(k) Plan Mistakes.”)  

Avaneesh Bhagat, voluntary compliance group manager, and Sherri Morris, voluntary compliance tax law specialist, will present this phone forum.  

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The registration link is here.

 

Compliance August 31, 2012

Ill. Company to Restore $2.7M to 401(k)

A.B.D. Tank & Pump Co. in Elmhurst, Illinois, has been ordered to restore $2,767,051 to the company’s retirement plan.
Reported by

A lawsuit following an investigation by the U.S. Department of Labor’s Employee Benefits Security Administration alleged Keith Davis, the company’s president and sole owner, depleted the assets of the plan through a series of withdrawals and transfers to himself and the company from December 6, 2006, through November 4, 2010, in violation of the Employee Retirement Income Security Act (ERISA).  

The A.B.D. Tank & Pump Co. 401(k) & Profit Sharing Plan & Trust was established in 1992. Davis is the plan’s trustee.   

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The court order requires A.B.D. Tank & Pump Co. to restore all losses, including lost opportunity costs, to the retirement plan, and permanently bars A.B.D. Tank & Pump Co. from serving as a fiduciary or service provider to any employee benefit plan governed by ERISA in the future. The complaint against Davis remains pending.

 

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