LESE examinations are the random selection of approximately 50 returns with similar characteristics that we believe may reveal problems. We use focused examinations 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 to let the public know about our examination findings.
- Self-Correct – Give plan sponsors an opportunity to use our published information about a specific compliance problem to perform a self-audit, and, if necessary, self-correct using one of our correction programs.
- Enforce – Expand the scope of the examination to other plans with the same plan characteristics as warranted.
Completed LESE project results and findings:
- Plans with Self-Employed Individuals (LESE Project #17)
- Potentially Frozen Money Purchase Plans (LESE Project #16)
- 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)