401k Audit

Does your company require a 401k audit?

As you may be aware, not all 401k plans are required to have a 401k audit. Though there are many reasons for plans of all sizes to consider a 401k audit, current government filing requirements require that large 401k plans (the Department of Labor considers a large plan as a plan with 100 or more eligible participants at the beginning of the plan year) file Schedule H to form 5500 and have the plan audited by a qualified independent public accountant. If the plan is not considered a large plan, it is required to file Schedule I Small Plan with its 5500 and forego the required audit.

Are there any exceptions needing a 401k audit?

Having a short plan year can be an exception to foregoing a 401k plans, 401k audit. In short, suggests that a Plan sponsor may elect to defer the audit requirement for the 401k plan, if the 401k plan’s Plan year is seven months or less. However, if the Plan sponsor elects to defer the audit requirement to the following Plan year and in the subsequent year, the Plan qualifies as a small plan; the Plan sponsor will nevertheless be required to have the 401k plan audited for the short Plan year.

If your company is interested in a 401k audit or any other auditing services , contact us online or call us at (818) 769-2010.