BUSINESSRetirement plans your own dutyPractice Pointers. By Rita M. Schwager, amednews contributor. Feb. 18, 2002. Question I recently heard of a colleague nailed with huge payments to the Internal Revenue Service for problems with his retirement plan. I have a profit-sharing plan and a pension plan. I let my accountant and my broker do the paperwork. I look at my investments and discuss this with my broker, and I write checks to put money into the plans. Other than that, I don't get involved. I certainly don't understand the rules for my plans. Should I be concerned? How can I protect myself? Answer Usually retirement plan documents designate a trustee. If you have invested the plan money with a brokerage firm, that company has a trustee responsibility to provide you with an accounting of the plan assets, as well as other professional fiduciary responsibilities related to the maintenance of the money in the account. But more than likely, you are listed as the trustee. If there are problems, you will be held accountable. You can be held accountable for plan performance, for theft of plan assets, for making the proper contribution for each participant, for making sure that all employees eligible to participate are included, for giving proper notification to all employees regarding the plan itself. Failure in any one of these areas could cause a problem for you. The IRS and the Labor Dept. have jurisdiction over your plan. These agencies have provided some relief in correcting errors, but that relief is more in the line of not disqualifying your plan if an error is made. They have allowed for reduced penalties if you discover an error and voluntarily confess to a mistake. But if an error is made that affects your employees, you will be required to "make your employees whole," if you undercontributed on their behalf.
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