Tools Introduced for Advisors to Help Plan Sponsors Deal with IRS Reporting Burden
CHARLOTTE, NC, February 8, 2010 -- New compliance and reporting burdens apply to plan sponsors for the 2009 plan year. Failure to report the necessary information requires the plan sponsor to report a service provider to the DOL. However, PlanTools, LLC has introduced an expanded suite of online tools that automates the production of data for inclusion in the required filings. The rest of the industry has been unusually silent on the creation of a solution that fully conforms to the new reporting requirements to disclose direct and indirect fees paid to vendors, advisors, brokers and other providers.
Industry observers have voiced concerns that many service providers may not be ready to provide the required reporting by the October 15, 2010 filing due date. "The new 2009 Schedule C requirements impose sweeping changes on plan sponsors and service providers, any party that ignores this requirement does so at their own peril," according to Brian Hubbell, AIFR, Founder of Hubbell Consulting, LLC.
Investment advisors and other service providers are looking for solutions to meet this impending requirement. "Time is running out. This is not could do, might do, or ought to do; it is a 'must do' for every service provider and plan sponsor. As an experienced PlanTools user I find PlanTools is dedicated to developing effective software applications that deliver meaningful support for service providers and advisors that will enable them to effectively meet this obligation," said John Shubert, Executive Vice President of CBIZ Retirement Consulting, Inc. PlanTools meets this challenge by incorporating the 58 different Schedule C codes into the expense analysis and benchmarking system to enable service providers to efficiently identify, calculate and report service provider fees.
This continues a long]term commitment to retirement plan sponsors and their professional advisors, that dates back to the launch of the product in 2002. According to David Witz, AIFR, PlanTools' Managing Director, "This is the industry's first integrated application that automates the collection, calculation and appointment of plan expenses to the new IRS 5500 form Schedule C codes."
With the new Schedule C Report, PlanTools has integrated fee analysis and benchmarking with ERISA reporting and disclosure requirements. This combination provides professionals with ten different independent reports that can be produced simultaneously with each benchmarking report designed to assess the reasonableness of fees for services rendered by all parties against live data not "data dumps"from IRS filings. "We found the IRS data feed to be unreliable and inaccurate. Instead, PlanTools relies on the intellectual capital of service providers who know the plan sponsor best to quarterback the collection of accurate data to populate the system, said Witz."
PlanTools' release of the Schedule C report will help sponsors meet their Federal reporting and disclosure requirements. "This is timely and very necessary! Plan sponsors and plan advisors need this information to understand if they are getting value from their services providers," said Al Otto, AIFAR, Founder of OneFiduciary.
PlanTools-based services are exclusively available through service providers, but PlanTools has announced that any retirement plan sponsor may receive a complimentary analysis prepared by a professional PlanTools user through March 31, 2010. For plan sponsors interested in this limited time offer, contact David Witz at (704) 564]0482 or dwitz@fraplantools.com.
About PlanTools
PlanToolsTM Risk Management System (PlanTools) is a pioneer in the delivery of an integrated web-hosted, standards-based analytics, reporting and monitoring suite. For more information, visit www.fraplantools.com or contact David J Witz, AIFR and Managing Director at 704-564-0482.
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