Retirement Plan Audits

If your company’s retirement plan has 100 or more eligible participants at the beginning of the plan year, you’ll generally need to have it audited by a qualified independent accountant each year.

A plan audit typically includes reviewing plan documents to verify they comply with IRS and Department of Labor rules, examining employee contributions to ensure money was remitted timely, confirming distributions and rollovers were paid out correctly, sampling specific participant’s transactions for plan compliance, and determining the accuracy of the information reported.

Keeping track of plan-related documents throughout the year—and for smaller companies experiencing steady growth, monitoring the number of active participants— are the simplest ways to prepare for an audit.