Los Angeles counsel Heather Abrigo participated in an interview with John Hughes, co-editor of the 401(k) Advisor.
In the interview, Heather discussed operational failures, which is a failure that affects the qualification of the plan and arises because of a failure to follow the terms of the plan. These failures can in some cases be addressed by the client if insignificant; otherwise the plan sponsor may need to file a formal application with the IRS.
Heather also discussed the most common operational errors that she has come across, which normally relate to eligibility for participation in a plan, especially for those employers who experience a large turnover.
Some of Heather's suggestions on best practices include using a service agreement and adequate training and oversight of key staff members.
In conclusion, Heather recommends that service providers carefully review their E&O policy annually to ensure that it meets their needs to confirm that the coverage limits are adequate.
To read the entire interview, click here.
The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.
