Business owners: many existing business retirement plans have some type of structural issue which needs to be corrected.  One of the most common mistakes companies make when establishing a new 401(k) or other business retirement plan is failing to identify that a control group exists within the ownership of the company.  Ownership of businesses can be complex, and directly affects how you are allowed to structure your business retirement plan.  There are 3 ways in which control groups may exist: parent-subsidiary, brother-sister, and a combination of the two.  Please see this link for important information from the IRS about control groups, and check with your CPA to determine if you have any type of control group relationship.  Pawleys Investment Advisors is happy to coordinate with your tax professional and Third Party Administrator to conduct a comprehensive evaluation of your existing plan, or provide recommendations for the structuring and investment selection for a new plan.  Often business owners act as the plan sponsor, so it is important to have the right team in place to support the fiduciary requirements (unlike broker dealers or registered representatives at the large national investment chains, Registered Investment Advisors can act as a fiduciary over IRA, 401(k) and other retirement assets).  Improve the satisfaction of your employees and your preparedness for a Department of Labor audit!

http://www.irs.gov/pub/irs-tege/epchd704.pdf

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