A 401(k) plan census report is a document that compiles employee information on all employees who were paid during the plan year. The census will often provide details on an employee’s name, date of birth, social security number, date of hire and termination, gross compensation, hours worked, employee deferrals, matches, highly compensated employees (HCEs) and …
In July 2019, the AICPA issued the Statement on Auditing Standard (SAS) 136 – Forming an Opinion and Reporting on Financial Statements of Employee Benefit Plans subject to ERISA standards. The primary goal of the standard is to improve audit quality by making the auditor’s report clearer and easier to understand for the users of …
The tax law places limits on the dollar amount of contributions to retirement plans and IRAs. IRC Section 415 requires the limits to be adjusted annually for cost of living adjustments. Don’t miss: Important information when changing plan administrators The below table shows a three-year comparison (starting in 2020) of certain retirement plan limits. Plan …
On November 16, 2015, the Department of Labor’s (“DOL”) Office of Chief Accountant sent an e-mail to all plan administrators of plans which are required to have an annual financial statement audit alerting them of the importance of obtaining a quality audit from a qualified and experienced CPA firm. This is primarily in response to …
As a sponsor of an employee benefit plan, along with annual reporting requirements, you may be required to undergo an audit of your plan’s financial statements. What are the reporting requirements and what triggers an audit? This varies depending on the type and size of the plan you sponsor. One participant plans (a business owner …
The Employee Retirement Income Security Act of 1974 and provisions of the Internal Revenue Code require certain employee benefit plans to submit information on their size, funding, operations, and other characteristics on an annual basis. For the plan years 2009 to date all of these filings are stored electronically and can viewed through the EFAST2 …
As 401(k) auditors we are frequently asked “How long does a company have to have an audit for a plan that is terminated?” Unfortunately as companies struggle during these tough economic times, plans are being terminated both as an effort to save costs or because the company has closed its doors. As part of the …
As we approach the upcoming heavy filing season for Form 5500 (or Form 5500-SF), and the second year under the requirement to file these returns using the electronic EFAST2 system, it is important to understand the various filing statuses to monitor the status of your submission. Users of the EFAST2 system can expect to encounter …
Another year end has passed and now you are probably compiling and sending the 401(k) files to your third party administrator for them to complete their compliance testing, and other plan financial reports. Many of these documents will then be requested by your 401(k) plan auditor. Additionally your auditor will be requesting other Plan documents …
Has your 401(k) Plan recently been audited by the “Employee Benefits Security Administration” of the U.S. Department of Labor? If yes, have they identified any Non-Exempt (prohibited) transactions? For detail on what constitutes a Non-Exempt (prohibited) transaction, please review “Instructions for Schedule G” Form 5500, Financial Transaction Schedules” of the Instructions for Form 5500 – …