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Practical Corrections Series 05: Plan Loan Failures
Presentor: Derrin Watson Recorded Date: 5/17/2016 Duration: 60 Min.

This program was recorded during a live presentation given on May 17, 2016 at 12:00PM EST.

Web Series: Practical Error Correction and Prevention – A Focused Approach

Mistakes happen. Unfortunately, they happen all the time, even to well-run plans. Fortunately, the IRS has provided step by step guidelines to correct the most common errors. Sometimes, there are alternative methods to dealing with a problem and it can be confusing to determine the best approach.

This 6-parts Web Series will provide an in-depth approach to plan correction. Each week, we will look at a specific problem or set of related problems, consider how the errors could have been prevented, and walk you step-by-step through correction techniques. These programs will not provide generalized theories. Instead, each will focus on specific plan failures and how to address them on a day-to-day basis. Webcasts will include:

  1. Elective deferral failures: too easy to fail
  2. Plan document failures: fix them before the price goes u
  3. Allocation mistakes for employer contributions
  4. Distribution failures: too much, too little, too soon, too late
  5. Plan loan failures: even if the plan didn’t make a mistake
  6. Testing failures: ADP/ACP, 415, 402(g)

Practical Corrections Series 05: Plan Loan Failures: even if the plan didn’t make a mistake

The IRS has recently provided generous adjustments to the fees for correcting plan loan failures, making it easier than ever, not only to correct operational failures, if any, but also to bail participants out of the tax consequences of deemed distributions. But, making use of the rules requires that the plan and those serving it navigate through the paperwork jungle that the IRS has created. This 60 minute seminar is your map to safety, showing you handle to handle plan loan failures in the best manner for the plan and the participants.

Topics include:

  • Key definitions
  • Types of loan failures
  • Limited self-correction option
  • Potential employer liability
  • Relief offered
  • Lower VCP fees
  • Correction and adjustment procedures
  • Completing IRS schedules
  • Prerequisites:

    There are no prerequisites or other advanced preparation for this program. The speaker will assume attendees have a basic familiarity with the elective deferral procedures and EPCRS. Attendees should have one year of experience.

    Level: Beginning.

    Instructional Delivery Method
    Group – Internet-Based

    NASBA Field of Study: Taxes

    Speaker: S. Derrin Watson, J.D.
    Recipient of ASPPA's 2006 Educator of the Year Award

    Objectives: After attending the program you should be able to:

    • Identify plan loan failures
    • Correctly complete required VCP forms to correct loan failures
    • Advise a client of options for addressing loan failures

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