Preparing for a 401(k) or Employee Benefit Plan (EBP) audit requires careful attention to detail and proactive organization. Whether your audit is required by the IRS or Department of Labor (DOL), or it’s simply best practice to ensure compliance, being fully prepared can make the process more efficient and less stressful. Our CPA team specializes in guiding plan sponsors through the audit process, helping you meet all regulatory requirements and avoid penalties.
Preparing for a 401(k) or Employee Benefit Plan (EBP) audit requires careful attention to detail and proactive organization. Whether your audit is required by the IRS or Department of Labor (DOL), or it’s simply best practice to ensure compliance, being fully prepared can make the process more efficient and less stressful. Our CPA team specializes in guiding plan sponsors through the audit process, helping you meet all regulatory requirements and avoid penalties.
An audit of your 401(k) or employee benefit plan is required by the DOL if your plan has 100 or more eligible participants. It serves to verify the accuracy of your financial statements, ensure that contributions are being managed properly, and confirm that the plan complies with ERISA (Employee Retirement Income Security Act) regulations. The IRS may also audit plans to ensure compliance with tax regulations. Failing an audit can lead to significant penalties and jeopardize the financial integrity of the plan.
Follow these key steps to ensure your plan is fully prepared for a 401(k) or employee benefit plan audit:
Audits can uncover several common issues in 401(k) and employee benefit plans. Knowing these potential pitfalls can help you avoid them:
Working with a CPA firm that specializes in 401(k) and EBP audits can significantly streamline the audit process and reduce the risk of non-compliance. Our CPA team provides the following services to help you prepare:
During the audit, the auditors will review plan documents, participant records, and financial statements to ensure compliance with ERISA and IRS requirements. They will also test internal controls and verify that contributions are being handled properly. Once the audit is complete, you’ll receive a detailed audit report that outlines any findings and recommendations for improvement.
Preparing for a 401(k) or EBP audit doesn’t have to be overwhelming. Our CPA team is here to guide you every step of the way, ensuring that your plan is fully compliant with IRS and DOL regulations. From pre-audit reviews to internal control testing, we provide comprehensive support to help you navigate the audit process with confidence.
Contact us today to learn more about how we can assist with your 401(k) or employee benefit plan audit preparation.
Form 5500 for 401(k) and Employee Benefit Plans