Case Study – Retirement Benefits Program


• Private Company
• 150 employees
• Previous record keeper failed to keep the plan compliant

401(k) plans are subject to a multitude of regulations and testing with which they must adhere. To make matters more difficult complicated tax laws and reporting requirements add additional pressure and workload to a plan sponsors already busy day. These requirements have made it increasingly difficult for plan sponsors to focus on other more pressing aspects of their roles by devoting valuable time to resolve these complicated issues. As is often the case, plans look to their retirement plan administrator and recordkeeper to administer and help provide assistance in testing, filing of proper tax documents, provide plan reporting and help keeping their plan compliant.

Retirement Direct was asked by our new client to help provide assistance to a retirement plan for which they managed the investments and education of the plan participants. After the current record keeper was incapable of correcting the reporting and filings, the plan was facing a plan audit. Upon further discovery it was found that the plan had also improperly refunded excess contributions to participants.

We were asked to provide assistance to correct the following issues:

Improve reporting and compliance for the plan
• Provide accurate reporting and administrative efficiency
• Take steps to ensure the plan would stay complaint
• Improve services
• Reduction in administrative and recordkeeping costs

After converting the plan to our platform, Retirement Direct worked with the plan sponsor to take the corrective action which included filing a voluntary compliance program through the IRS. Further, we worked with the plan sponsor to put steps in place to prevent the issues from occurring again and remedy the past compliance issues. We also managed to reduce the overall expense of the plan and ensure that the plan remain compliant going forward. Our expertise provided for a better customer experience, enhancement of the overall service provided and increased the value of the retirement plan for the participants and the plan sponsor.