Question 1

Does my company need an employee benefit plan audit?

Accepted Answer

A 401(k) or other defined contribution plan generally requires an annual audit when it has 100 or more participants with account balances at the beginning of the plan year.  Other requirements may apply, so the audit determination should be reviewed annually. Participant counts are especially important in the first year your plan needs an audit.

Question 2

What exactly does an employee benefit plan audit cover?

Accepted Answer

The audit generally includes testing of plan investments, contributions, benefit payments, participant data, administrative expenses and compliance with certain plan provisions. It also includes testing internal controls and participant transactions.

Question 3

What are the most common mistakes identified during a 401(k) audit?

Accepted Answer

Common issues include late participant contribution remittances, incorrect eligibility or compensation calculations, incomplete participant data, improperly administered loans and distributions, and failure to follow the plan document.

Question 4

Should we use a specialist firm for our benefit plan audit, or can our regular CPA handle it?

Accepted Answer

Not all CPAs perform this specialized work. Using an experienced employee benefit plan audit team can help identify compliance issues, reduce delays and improve the overall quality of the audit.

Question 5

How long does an employee benefit plan audit take, and when do we need to file?

Accepted Answer

An employee benefit plan audit typically takes four to eight weeks to complete, depending on the plan’s complexity and the availability of records. Form 5500 is generally due seven months after the plan year ends July 31 for a calendar-year plan. A Form 5558 extension generally extends the deadline to October 15.

Question 6

What Documentation does a CPA firm need to conduct a 401(K)-plan audit?

Accepted Answer

The plan document, adoption agreement and amendments, current-year census and payroll data, trust or custodial statements, contribution records, participant account information, and prior-year Form 5500 filings.

Additional documentation may include employee records, distribution and loan  applications, compliance testing, forfeiture activity, investment information, service-provider reports, plan committee minutes and evidence supporting the plan’s internal controls.

Question 7

Can my employee benefit plan audit be done remotely?

Accepted Answer

Yes.

Most employee benefit plan audits can be performed remotely using secure document-sharing systems, electronic records and virtual meetings.

Question 8

What if our employee benefit plan hasn&#8217;t had a required audit in several years?

Accepted Answer

Missing the required employee benefit plan audit is more common than employers realize. Whether the audit was overlooked due to a change in plan size, a misunderstanding of the rules, staffing changes, or administrative oversight, it's important to address the issue as soon as possible.  Our employee benefit plan specialists will review your plan's history, determine which years require an audit, identify any Form 5500 filing issues, and work with your plan administrator and advisors to develop a practical path toward compliance.  Taking action before the Department of Labor contacts, your organization often provides more options for correcting filing deficiencies and demonstrates a good-faith effort to comply with ERISA requirements.  Our team has extensive experience helping plan sponsors navigate complex compliance issues, including plans that have missed audits for multiple years. We understand that these situations can feel overwhelming, but with the right guidance, they are often manageable.

If you think your plan may have missed one or more required audits, don't wait. Contact us for a confidential consultation, and we'll help you understand your obligations, evaluate your options, and develop a plan to get your employee benefit plan back on track.

Employee Benefit Plans

Offering a broad range of employee benefit plan audit services