May 08, 2015

Atlantic Pension's Solution to IRS Common Compliance "Failure" #1

Compliance "Failure" #1 - Failure to amend the plan document for tax law changes by the end of the period required by law.

Approximately every six years, qualified plans on a pre-approved document are required to be restated to a new plan document in order to conform to applicable changes in the federal tax laws as issued by the Internal Revenue Service (IRS). The current document cycle started last year and all pre-approved documents must be updated for the language and provisions of the Pension Protection Act by April 30, 2016. Atlantic Pension is currently in the process of amending the documents for all current clients. All new clients receive a PPA compliant document.

What happens if a client does not amend in a timely fashion for PPA? Or what if they did not adopt one of the required amendments leading up to PPA? The IRS has a correction program known as VCP that results in the retroactive amendment or late adoption being treated as timely. Atlantic Pension can help with this filing. Call us today at 610-925-5554 and ask for Christine Prisco, our document specialist.