Even though group practice retirement plans typically have a relatively small number of participants, these plans can be more complex and laden with compliance issues and challenges. Older group practice plans often have serious compliance and fiduciary issues, and unless someone knowledgeable takes the time to examine the plan operation and paperwork, chances are that these issues would only be discovered upon an audit by the Internal Revenue Service or U.S. Department of Labor – in other words, much too late. Compliance errors and fiduciary breaches can potentially lead to hefty IRS and DOL penalties and fines, especially if such breaches have occurred over many years. Therefore, it is preferable and almost always less costly to not only fix them, but also to make sure that your plan is run in such a way as to eliminate the possibility of serious breaches, errors, and liabilities in the first place.
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