Administrative Bottlenecks from Unresponsive Participants in RMD Processing

$100–$250 per affected RMD participant per year in staff time, rework, and coordination, multiplied by many small employers, plus reputational risk to the PEO when participants complain or regulators question missed RMDs. • $100–$300 per complex RMD case annually in incremental labor and communications, with potential for large cumulative penalties, remediation costs, and legal exposure if systemic RMD failures are found during DOL or IRS investigations. • $100–$300 per impacted RMD case annually in overtime, temp staffing, and audit prep, plus heightened risk of regulatory sanctions, plan audits, and participant complaints that can cost tens of thousands when escalated.

Analysts manually cross-reference legacy HR files, contractor rosters, and prior plan records, track outreach in spreadsheets, and assemble proof-of-effort packets in PDFs and paper form for potential regulator or plan auditor review. • Dedicated RMD teams create and maintain massive Excel trackers by plan and year, manually updating status for every outreach attempt, using email templates, call notes, and paper files of returned mail to evidence fiduciary prudence. • Manual chasing via repeated letters, phone calls, and address searches across decentralized records when participants unresponsive to initial notifications.