Don’t gamble for a DOL audit


The last two times I was in Las Vegas, I didn’t gamble a penny. I didn’t gamble because I hate to lose.


Yet I see so many plan sponsors and plan providers gamble by not correcting a glaring compliance issue and play that the plan won’t be audited by the Internal Revenue Service or the Department of Labor (DOL). I don’t like to gamble my money, the house’s money, or my client’s money. I’d also be committing malpractice by not telling the plan sponsor to fic their issue.


Why do I hate to gamble on an audit? I have enough plan sponsor audits with the government that It’s not something I enjoy representing my clients during, especially when major problems are detected. More importantly, I look at the numbers. In 2018, the DOL closed 1,329 civil investigations with 860 of those cases (64.7%) resulting in monetary results for plans or other corrective action. At a recovery of almost $2 billion through various methods, going through a government audit is not something I’d recommend. Sure, there are legal fees and compliance fees, but it sure beats a government audit where the penalties are more severe.

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