Plan sponsors do make DC plan termination mistakes, but this second video of a three-part series aims to help prevent those errors. (Photo: Shutterstock)

Terminating a retirement plan is complicated. The importance of having a well thought out plan in place before beginning the plan termination process is imperative because making mistakes can be costly.

To better understand why plan sponsors were making mistakes in qualified plan terminations, the IRS Employee Plans Compliance Unit conducted a “Termination Project” in 2011. Over 75% of the sampled sponsors made errors! 

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