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Pension Tension

Don't let your business's retirement plan get nabbed by the IRS.

This story appears in the November 2000 issue of Entrepreneur. Subscribe »

It's a well-known fact: If you want to receive tax benefits from the IRS, you must comply with a host of requirements. This is especially true when dealing with qualified retirement plans. To be considered tax-qualified and enjoy the tax benefits that go with that, retirement plans must adhere to a laundry list of regulations.

Therein lies the problem. Many retirement plans, especially those offered by small and midsized businesses, don't meet all the plan requirements. The IRS found, for example, that about half the qualified plans examined in 1997 were not in compliance, says Pat Navin, a principal in charge of the employee benefit specialty tax group for Deloitte & Touche.

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