Currently, the IRS estimates that at least 94% of all qualified retirement plans are Master and Prototype plans and Volume Submitter plans. In it's sixth report to the IRS, The Advisory Committee on Tax Exempt and Government Entities (ACT) made suggestions to ensure greater compliance with the qualification rules by employers adopting preapproved plans.

The ACT found that adopting employers of preapproved qualified plans frequently do not understand the most essential elements of their plans. For example, adoption agreement failures often occur due to missing information, the failure to understand the implications of the options being selected, inconsistencies with prior adoption agreements when moving to a new Sponsoring Organization or the failure to timely amend when required. Furthermore, adopting employers often fail to understand their responsibilities for plan maintenance, as well as the responsibilities of their service providers and professionals. Finally, adopting employers often do not appreciate the consequences of their failure to operate the plan in conformity with plan documents and the requirements of the IRS and other government agencies.

In addition, the ACT's report notes that plan failures are based often upon the failure to provide adequate resources and personnel needed to properly administer a qualified retirement plan (or at least the type of plan adopted). Further, the failure of sponsoring organizations to educate adopting employers on the complexities of the plan and their respective responsibilities will add to the possibility of a plan failure. Finally, noncompliance frequently will be the result of adopting employers failing to use the services of competent, knowledgeable service providers and professionals.