what we offer

plan design

LRS provides Plan Design and Implementation Services to ensure that all your plan documents are drafted in compliance with governing federal laws and generated in a timely manner to meet disclosure deadlines.

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automatic enrollment

A 401(k) or 403(b) Plan can include an automatic enrollment feature. This feature permits the employer to automatically reduce employee wages by a fixed percentage or amount . . .

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record keeping

LRS collects, tracks, monitors and stores all necessary plan records, and provides an online account portal where all plan and participant records are securely stored and easily accessed by plan fiduciaries.

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Compliance

Even with the best intentions, fiduciary and operational violations can occur with a company sponsored retirement plan. LRS understands that employers are doing their best to ensure compliance with all governing laws.

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ROBS Transactions

There are several companies promoting and selling transactions which the Internal Revenue Service (IRS) calls “Rollovers as Business Start-ups” (ROBS) transactions.

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Education

Retirement plan fiduciaries are subject to joint and several personal liability for fiduciary violations. LRS provides plan fiduciaries with basic and advanced education to ensure plan fiduciaries can properly oversee ...

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Administration &
IRS Reporting

Sponsoring a retirement plan can be an administrative nightmare for most employers: ensuring that all plan documents have been properly disclosed in compliance with federal law, assisting employees with enrollment elections, ensuring that terminated employees are rolled out of the plan, and much more.

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White Label &
Reseller Program

LRS provides business process outsourced (BPO) Retirement Plan services for employers, administrators, financial planners, and brokers. LRS understands the importance of maintaining brand presence with your business clients.

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compliance

Even with the best intentions, fiduciary and operational violations can occur with a company sponsored retirement plan. LRS understands that employers are doing their best to ensure compliance with all governing laws. However, most employers do not know or understand the laws for which they are required to comply, and consequently they may violate the law.

LRS provides a variety of Retirement Plan compliance services including: plan audit and correction services, 415 compensation testing, 416 top-heavy and ACP/ADP testing avoidance, 410(b) discrimination testing, 404 maximum deductions, employer contributions and any other necessary compliance activities required by a particular plan.

LRS’s compliance programs are designed to ensure that plan fiduciaries comply with their obligations, protect plans assets, and minimize personal and financial liability wherever possible. We can help you evaluate your plan on an ongoing basis, including:

  • * Fiduciary fee evaluation services
  • * Prohibited transaction and other fiduciary violation corrections
  • * Preparation, coordination and submission of the plan to correction programs including: the Internal Revenue Service’s self-correction program (SCP), voluntary correction program (VCP) and audit closing agreement program (Audit CAP), and the U.S. Department of Labor’s delinquent filer voluntary correction program (DFVCP) and voluntary fiduciary correction program (VFCP)
  • * Reasonable cause letters for delinquent filers
  • * Evaluation of plan mergers in compliance with the growing governing law and fiduciary prudence standards
  • * Support for hard to value plan assets – qualified employer securities and qualified employer real property


LRS also provides a Disaster Recovery Service, as a complimentary service, so you have back-up documents and legacy records in the event a disaster destroys all or part of your information. This is a great service because it provides employers with the confidence and assurance that their information is always protected and available even in the event of a disaster.

robs transactions
What is ROBS and who are ROBS Transaction Promoters?
There are several companies promoting and selling transactions which the Internal Revenue Service (IRS) calls "Rollovers as Business Start-ups" (ROBS) transactions.
The ROBS transaction works like this:
  1. The promoter company provides their client with a C corporation and a qualified 401 (k) plan.
  2. Citing exemptions in the Internal Revenue Code (IRC) and the Employee Retirement Income Security Act (ERISA), the promoters help a client roll over his or her retirement funds into the new 401 (k) plan, and then use those funds to invest in stock in the new corporation.
  3. The client then transfers the retirement funds to the corporation.
  4. Because of IRC and ERISA exemptions, the client pays no taxes or penalties for early withdrawal. Though the IRC and ERISA make available certain exemptions which permit a plan to purchase stock in its plan sponsor (the new corporation) certain basic conditions must first be satisfied before a plan can avail itself of the ERISA exemptions. The IRS recently commented on the ROBS transaction, stating that ROBS is not a per se violation of the IRC or ERISA, but that they are very concerned with “significant operational defects” being found with these 401 (k) plans. On October 1, 2008 the Internal Revenue Service posted a technical memorandum addressing ROBS transactions.
The U.S. Department of Labor (DOL) has yet to formally comment on the transaction though they have expressed that they have been actively collaborating with the IRS.
Does Leading Retirement Solutions help with ROBS transactions?
Yes, we do assist individuals who wish to utilize their retirement monies to finance the purchase of a business and/or take their existing business to the next level. We don’t “sell” the ROBS transaction, rather, we help retirement plans that want to be able to invest in private stock, do so. Rest assured that education and information we provide is completely independent and free from bias.
Are You Considering purchasing a ROBS transaction?
Contact Leading Retirement Solutions to learn about the ROBS transaction and determine whether offering qualified employer securities to your plan would be a good fit. The design and administration of plans that include non-traditional investments like the private stock of a ROBS transaction, often require certain kinds of recordkeeping support, annual asset valuations and IRS reporting. Our team is led by Kirsten Curry, a business and ERISA attorney, who brings with her the perspective and experience necessary to administer such a plan. Leading Retirement Solutions also manages the completion and filing of tax forms to ensure your plan remains in compliance. If you are looking at ways of raising funds for a business purchase or growth of your business, Leading Retirement Solutions can help.
Have You Already Purchased/Engaged in a ROBS Transaction?
Don’t wait for the IRS to knock on your door. We encourage you to work with Leading Retirement Solutions to identify and correct any fiduciary and plan violations caused by the use of ROBS transactions. Our correction services are performed by qualified retirement plan experts. By undergoing a retirement plan review, clients will be able to identify violations and avail themselves of beneficial correction programs. Therefore, it is in your best interest and your plan’s interest to review your retirement plan now and perform any necessary corrections immediately. If you have purchased a ROBS transaction from a promoter, we encourage you to contact our office to learn more about our ROBS retirement plan review.
The Trouble with ROBS and its Promoters:
In many case, taxpayers who have purchased ROBS transactions have little or no familiarity with the IRC or ERISA and rely on the promoters as experts. The ROBS transaction is a sophisticated business transaction, that requires a significant amount of legal analysis, but ROBS promoters like BeneTrends, SDCooper, Guidant Financial Group, and FranFund, just to name a few, are not law firms, tax firms or investment advisory firms. Some promoters often refer to themselves as financial or investment companies but typically provide no brokerage or financial planning services. Moreover, the promoters are providing legal advice on the ROBS transaction in violation of state laws prohibiting the unlicensed practice of law. No state permits a non-lawyer to practice law, which includes providing legal advice.

Some promoters promise to provide their clients competent legal counsel from an independent attorney. These promoters pay for two hours of legal service. The independent attorneys provide a limited scope of service and do not prepare the transactional documents. In almost all cases where a taxpayer has been referred to an independent attorney, the taxpayer has already begun to execute a business purchase on which to spend their plan assets after completing the ROBS transaction. The taxpayer has already been advised by the promoter that the ROBS transaction is sound and compliant with the law and the attorney only needs to review the transactional documents with the taxpayer and address limited issues. The client is, sometimes wrongly, convinced by the promoter that their transaction passes legal muster, not understanding that the promoter is not an attorney or a law firm and is thus prohibited from rendering a legal opinion.

There have been cases where an attorney has identified transactional violations. Feeling misled, the mutual client returns to the ROBS promoter who often responds by referring the client to a different attorney who, more often than not, provides the mutual client with a more “favorable” opinion. As a result, the transactional violations identified by the first attorney may never be corrected and the mutual client is unaware they are operating in violation of federal law. We have noted some promoters are even promising their clients a guarantee in the event of an IRS audit. The guarantee is nothing more than another sales tactic used to induce prospective clients, who may be concerned about the legal issues raised by the IRS technical memorandum or otherwise, to purchase their product. The guarantee does not protect taxpayers from violating the law. Nor does the guarantee stop the imposition of excise taxes by the IRS for fiduciary and plan violations. Moreover, the guarantee does not provide adequate safeguards to prevent or predict violations of the IRC and ERISA by taxpayers who have engaged in a ROBS transaction. The IRS has identified at least nine promoters of the ROBS transaction and expects to have a comprehensive list of promoters and their clients by April 2010. This means there is a strongly likelihood that taxpayers using the ROBS transactions will be investigated by the DOL and/or audited by the IRS.
administration & irs reporting

Sponsoring a retirement plan can be an administrative nightmare for most employers: ensuring that all plan documents have been properly disclosed in compliance with federal law, assisting employees with enrollment elections, ensuring that terminated employees are rolled out of the plan, and much more. LRS performs all Retirement Plan administration tasks for defined contribution plans, including an enhanced service, where LRS interacts directly with the plan sponsor’s employees to ensure all Retirement Plan administration is performed thoroughly and timely.

LRS’s Retirement Plan Administration service may include some of the following employer tools and employee disclosures:

  • * Plan selection and election services
  • * Employer calendar containing deadlines for plan activities
  • * Employee enrollment and participant account set-up
  • * Plan amendments
  • * Summary of material modifications
  • * Updated summary plan descriptions
  • * Participant account statements
  • * Distribution disclosures
  • * Employee notifications, e.g. required minimum distributions, transfers, distributions, enrollment changes, loans provisions, investment election changes, salary reduction notices, QDIA, QDRO
  • * Loan administration including establishing and drafting loan policies and procedures, loan applications, loans, loan processing and qualification limits, and loan payment processing
  • * Preparation and administration of in-service and hardship distributions, including QDROs
  • * Special plan disclosures
  • * 402(g) testing
  • * Employer deferral notices
  • * Matching of employee contributions
  • * Collecting and providing investment materials and fees
  • * Assisting fiduciaries with plan investment options
  • * Establish administrative accounts and participant accounts as needed
  • * Termination services including distributions from plan to individual retirement accounts and preparation and dissemination of the Internal Revenue Service tax notice disclosure to the terminated employee
  • * Document management system design for proper in-house Retirement Plan administration
  • * Plan asset rollover services (in/out)
  • * Retirement Plan plan monitoring services to ensure compliance with plan elections and federal laws
  • * Contributions limit disclosure
  • * Bond set-up
  • * Term package
  • * Alternate investments
  • * Employee rewards program – incentives and retention
  • * Safe Harbor
  • * Roth 401 (k)
  • * QDRO / QDIA verification
  • * Special services required by plan elections
  • * Employee calendar containing plan activity dates (enhanced service)
  • * Employer Retirement Plan handbook: an employer guide to proper plan administration (enhanced service)
  • * Employee participation package designed to maximize employee enrollment (enhanced service)
  • * Assisting employees with retirement planning by defining long-term financial goals and savings targets to achieve their goals (enhanced service)
  • * Automatic enrollment services (enhanced service)
  • * Last participant skip tracing services (enhanced service)


LRS reviews all client plans carefully to determine whether a plan requires special plan administration. After each plan is reviewed, an internal calendar and external client calendar are prepared to ensure all plan activities are executed in a timely manner and in compliance with federal law.

LRS also provides Plan Document Production Services, to ensure your plan documents are drafted in compliance with all governing federal laws and generated in a timely manner to meet disclosure deadlines. Plan Document Production Services can be combined with any of our other services.