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What happens if the IRS finds that my POP plan isn’t compliant?

If the IRS finds that you are not in compliance with Section 125 of the IRC (Internal Revenue Code) you can be in a lot of trouble:

  • A fine of up-to $5,000 or even prison time (1 year if in blatant abuse of ERISA law);
  • If you are found to have misrepresented the facts/made false statements or intentionally omitted key facts your fines could include another $10,000 or even 5 years in prison;
  • If you fail to distribute a SPD (Summary Plan Document) to participants within 30 days of the request you could pay $110/day for each day thereafter;
  • And finally the DOL (Department of Labor) can fine you $100/day (maximum of $1000) for failure to furnish an SPD within 30 days of a request.

You obviously want to do good things for your employees, so why risk having such large fines imposed by not having the proper documents in place? For the cost of $99/year you can have all the necessary documents for your POP plan just a click away.