After discovering that their platform had failed to auto-enroll almost 150 participants over a period of 18 months, the plan’s sponsor contacted the platform for assistance. Their platform representative claimed it was the client’s responsibility to correct the error, knowing it would be a costly and time-consuming endeavor. Frustrated, the client contacted LAMCO seeking experienced counsel.
The LAMCO team, which includes a Qualified 401(k) Plan Administrator and an ERISA Attorney, quickly got to work smoothing the situation. We contacted the platform and were able to put a correction plan in place to ensure our client’s plan was back on track as soon as possible, with the least out-of-pocket costs.
LAMCO oversaw the enrollment process to completion. Though the total cost of the correction came in close to $131,000, LAMCO negotiated on the client’s behalf and we were ultimately successful in getting the platform to contribute just under 50% of the cost—the maximum they were allowed to pay.
The LAMCO retirement plan team documented the entire correction process for the plan’s auditors and the plan’s records. This documentation proved to be invaluable when, 12 months later, the plan was audited by the IRS. Our client turned to LAMCO for support again, and we were ready to help.
Our on-staff Enrolled Retirement Plan Agent designee coordinated the response to the IRS and was onsite to represent the client during the audit. The thorough documentation and rigorous organization of the records was noted and commended by the IRS agent, who was able to complete his onsite audit in only 4 hours.