Preparing your company and plan for its first 401(k) audit can be a tedious task, but with the right knowledge and tools you can help prepare for a successful and smooth audit.
As a company grows, the federal requirements for 401(k) plan reporting can change, prompting a partnership with a Certified Public Accountant (CPA) firm. Companies that are experiencing their first large plan audit can be caught unaware and therefore unprepared to undergo a detailed examination of plan compliance, internal controls, and industry […]
The AICPA Employee Benefit Plan Audit Quality Center has published a useful document to provide Center members with a general understanding of the tax and compliance requirements for 401(k) plans that are subject to the reporting requirements under the Employee Retirement Income Security Act of 1974 (ERISA). As we approach the […]
The AICPA Employee Benefit Plan Audit Quality Center has published a very useful Plan Advisory entitled “The Importance of Internal Controls in Financial Reporting and Safeguarding Plan Assets”. The document begins with general background information that might put you to sleep, but then moves into more interesting topics such as “How […]
The AICPA Employee Benefit Plan Audit Quality Center has developed a summary analysis of the U.S. Department of Labor (DOL) Employee Benefit Security Administration’s criminal enforcement actions involving employee benefit plans during the period April 2009 through November 2011. The summary includes actual fraud cases categorized by plan type. This tool […]
Every year it is important for 401(k) plan administrators to review the requirements for their plan’s operation. This annual review is a “best practice” that is often overlooked, but could save you time, money and headaches in the coming year. The IRS has published a very helpful checklist to help you […]
The Department of Labor (DOL) released information yesterday that underscores the importance of high-quality and effective audits of employee benefit plans. The DOL has filed a complaint in federal court seeking to restore over $400,000 to two benefit plans. The lawsuit alleges that the plans’ administrator failed to account for money […]
There are 2 new rules from the U.S. Department of Labor that all 401(k) plan administrators should be aware of. The first rule has been finalized and creates a requirement for fee disclosure to plan fiduciaries and participants. The second is a proposed rule to update the definition of fiduciary […]
The top 10 qualification failures from recent IRS exams are listed below, along with tips on how to avoid them: 1) Failure to properly amend the plan This is the most common issue that the IRS finds in its examinations of 401(k) plans. Laws related to retirement plans change frequently and […]
Top 10 IRS Qualification Failures The employee benefit plan audit season is underway once again. The K Financial team started fieldwork on several of our 401(k) plan audits in April and will be at client sites working on plan audits through August.