401K Audits

When does a Plan need an audit?

Audits are generally required for employee benefit plans with an excess of 100 eligible participants at the beginning of any plan year, however, there are transitional rules. The definition of an eligible participant includes employees who are eligible regardless of whether they elect to contribute.

Welfare benefit plans, such as medical, dental, life and long-term disability plans funded by a 501(c)(9) Voluntary Employee Beneficiary Association (VEBA) Trust that have more than 100 participating employees at the beginning of the plan year are required to have an audit performed. Unique circumstances involving privacy issues, insurance, actuarial calculations and multiple service providers dictate a need for a specialized set of skills when auditing these plans.

An audit report for these plans must accompany the Form 5500. There are mandatory supplemental schedules and specific reporting requirements imposed by ERISA, the DOL and generally accepted auditing standards (“GAAS”). These unique requirements make the area of employee benefit plan and welfare plan audits complex and place them outside of standard accounting and auditing services

Employee Benefit Plan Audit

Employee benefit plan regulations pose unique, high-risk decisions for Plan Sponsors and affect the future well being of plan participants. We rose to meet the demands of Plan Sponsors for assistance with meeting their fiduciary responsibilities in this unique area years ago, before the headlines were filled with retirement plan problems.

We pride ourselves in helping clients fulfill their annual reporting requirements and manage risks in the cumbersome qualified plan arena. The ERISA and Department of Labor requirements make the area of employee benefit and welfare benefit plan audits very complex and place them outside of standard accounting services.

Our team of professionals has the expertise to guide and assist organizations as they navigate through the rules and regulations in an effort to comply.
WE haves the experience required to efficiently and accurately perform audits of all types of employee benefit and welfare benefit plans,  including 401(k), 403(b), profit sharing, pension, 11-K’s and multi-employer plans.

401K Services Provided:

  • Audits (Full Scope and Limited Scope) of qualified defined contribution and defined benefit employee benefit plans as required by ERISA 103(a)(3)(A) and 29CFR 2520.103-1(b)
  • Audits of plans requiring filing of Form 11K
  • Audits of welfare benefit plans with a 501(c)(9) or other trust arrangement
  • Audits of 403(b) plans
  • Review of Form 5500
  • Determine extent of exposure regarding possible plan disqualification
  • Multi-year audits of plans not compliant with annual reporting obligations
  • Consultation regarding operational defects
  • Consultation regarding plan terminations
  • Consultation regarding plan mergers
  • Special projects for Plan Sponsors in need of specific plan assistance regarding numerous issues including eligibility, vesting, deferral calculations and remittance and employer contribution calculations
  • Free technical updates on select law changes or DOL / IRS matters
  • Consultation on auditor independence issues


Our 401K audit best practices include:

  • Providing a comprehensive list of schedules required
  • Providing a timeline from inception to completion
  • Documented, streamlined audit approach
  • Continuing professional education specific to benefit plans
  • We train our people so you don’t have to!