Guide to a 401(k) Audit

As a plan sponsor you may be required to engage a CPA firm to perform an audit of your 401(k) plan. As a general rule, the audited financial statements are required to be filed with your Form 5500 if you have 120 or more eligible employees. This is the general rule and your specific situation …

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Fraud in the Workplace – A Novel Use of Bank Statements

Cora was a very bright accountant. She was also very creative at her job – especially when it came to stealing money from her company. Cora was the Controller for a commercial property management company, known as Promanco (well, actually, that’s not the company’s real name, but we’ll use it to protect the privacy of …

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Fiduciary Responsibilities – Best Practices

Companies that sponsor 401(k) plans for their employees can sometimes underestimate the responsibilities that they should perform in order to properly monitor the plan and ensure that they are not exposed to claims that they have failed their fiduciary responsibilities. Although a significant amount of the plan administration can be performed by third-party services providers …

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Required Federal Income Tax Withholdings from 401k Distributions

The IRS has various rules related to income tax withholding from 401k distributions. The most common rule is the minimum 20% that is required to be withheld from eligible rollover distributions. However other withholding requirements can result in either no required withholding or withholdings based on withholding tables used for wages. Eligible rollover distributions are …

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