EP Examination Projects - Learn, Educate, Self-Correct and Enforce (LESE) Projects
LESE examinations are small and quick projects where we select retirement plan returns for examination based on “judgment sampling.” They do not involve selection of returns through statistical sampling methods, but the random selection of approximately 50 examinations with one (or more) similar characteristics that we believe may reveal problems. We use the focused examination concept to measure compliance levels of the selected groups’ retirement plans.
"LESE" stands for:
- Learn - Discover all we can about compliance issues using small samples.
- Educate – Publish examination results and let the targeted groups know about our findings and how to correct any errors.
- Self-Correct - Give the targeted groups an opportunity to correct using EPCRS.
- Enforce – Expand the scope of the examination to others within the targeted group.
Completed LESE project results and findings:
- Plans with Self-Employed Individuals (LESE Project #17)
- Investments in Non-Participant Loans (LESE Project #15)
- Plan Terminations Without a Form 5310 Filing (LESE Project #13)
- Potential IRC section 402(g) Excesses in 401(k) Plans (LESE Project #12)
- Employer Contribution per Participant Greater than IRC section 415(c) Limit (LESE Project #11)
- IRC section 415(c) Excess in Forms 5500EZ (LESE Project #10)
- Employer Contributions per Participant Greater than $135,000 (LESE Project #9)
- Corrective Distributions Reported on Schedules H or I (LESE Project #8)
- Non-Cash Contributions to Defined Benefit or Money Purchase Plans (LESE Project #7)
- Reported Defaulted Loans and/or Leases (LESE Project #6)
- Real Estate Investments and Participant Loans or Schedule D Filing (LESE Project #5)
- Top-Heavy 401(k) Plans (LESE Project #4)
- Invalid Business Codes (LESE Project #3)
- Small Plans and Participant Loans (LESE Project #2)
- Defined Contribution Plans with Less than $250,000 in Assets (LESE Project #1)
- LESE Exam Projects – EP Exam Director discusses the Learn, Educate, Self-Correct, Enforce Projects