Labor & Employment Partner Mike Wieber Provides Insight for Article on How Plan Sponsors Can Get Help from the IRSPlan Sponsor 11/03/21
Milwaukee Labor & Employment partner Mike Wieber shared his perspective with Plan Sponsor on the best approach for retirement plan sponsors looking to get reliable guidance from the IRS.
Following is an excerpt from the Plan Sponsor article:
More common than questions about new plans, however, are questions on compliance resolutions for plans that have failed in one way or another and do not qualify for the VCP program.
“If the method of correction is unclear or there are multiple ways that you might reasonably correct something, you can get the IRS to rule on your correction method through a private letter ruling [PLR],” Wieber says. In that case, the IRS is making a specific judgment on a specific situation. PLRs are helpful to plan sponsors, but they’re pricey, he notes. According to the IRS website, depending on the issue addressed, a sponsor could owe $5,000 to $38,000. PLRs can also take months or a year to complete, which can cause significant problems for a plan that has an immediate issue or question, says Wieber.