By: Jared Rosen
Do not wait for an audit from the Internal Revenue Service (IRS) to solve your plan’s operational problems. Sponsors should regularly conduct self-reviews of their plan’s operations to fix—and, even better, prevent—problems, sources say.
“Not enough plan sponsors are doing that,” says Carolyn BryNildsen, a senior manager at certified public accountant (CPA) firm Herbein + Company Inc. in Reading, Pennsylvania. Assuming that vendors will ensure plan operations run smoothly is “a very dangerous mentality to have,” she says. A sponsor could subsequently find its plan out of compliance and facing heavy IRS fines. “We encourage clients to be proactive in knowing how things are supposed to work, as opposed to waiting for something to go wrong,” she says.
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As a principal in the Audit, Accounting and Consulting Department and chairperson of the firm’s Employee Benefit Plan Services Group, Jared is well-versed in the technical standards of the employee benefit plan service industry and is a valuable resource to his peers in the firm. For more than 15 years, Jared has been providing financial reporting, tax, compliance and management advisory services for numerous industries, including construction, manufacturing, not-for-profit, and wholesale distribution. His strong grasp of the quality control standards and assurance requirements for audit and accounting practices enable him to effectively interpret general technical accounting and financial reporting standards, both old and new, for the firm’s client base.