The real key to making the FAB work for the employer in keeping auditing costs down is in the sensible application of the FAB’s 3rd condition. I would suggest that applying it consists of two parts. First, use a reasonable effort to determine and find contracts that were related to the plan at some time in the past and, secondly, making a reasonable effort to determine whether or not the rights under those contracts are “legally enforceable” by the individual.
Continue Reading Using the Third Condition of DOL’s FAB 2009-2 to Manage 403(b) Audit Expense