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401(k) Audits


When are 401(k) audits necessary?

If your business offers a defined benefit or defined contribution retirement plan such as a 401(k) plan, with 100 or more participants, an annual audit conducted by a third-party auditor is required by federal law.  The purpose of such an audit is to ensure that the plan is in compliance with governmental regulations as well as the contractual requirements of the specific plan.

While all administrators of 401(k) plans are required to file a Form 5500 with the IRS and Department of Labor (DOL) annually, in cases where there are 100 or more participants, these must also be accompanied by audited financial statements. Hinkle + Landers, PC’s experienced 401(k) auditors can assist and help to ensure that this process is a smooth and painless endeavor.

How can Hinkle + Landers, PC help?

Hinkle + Landers, PC’s skilled CPAs are familiar with the needs of financial audits for 401(k) purposes, including ERISA (Employee Retirement Income Security Act), IRS (Internal Revenue Service) and DOL (Department of Labor) regulations, tax requirements, and other regulations applying to 401(k) plans, including:

  • Non-discrimination testing
  • Participant eligibility
  • Investment allocations
  • SOC-1 reports
  • Hardship rules
  • ERISA Bonding requirements
  • Limited Scope certification
  • Late remittance of contributions
  • Prohibited transactions
  • Safe Harbor methods
  • Required Supplemental Schedules required in the Audit
  • 80-120 participant rule
  • Small vs. Large Plans

Hinkle + Landers, PC, can provide a comprehensive report

The financial audit reports which we provide cover all required elements, and can also provide information which can help your organization to improve internal controls to ensure compliance with legal and plan requirements going forward. Hinkle + Landers, PC will help guide your plan administration when necessary to ensure that all required documentation is in place, and will provide assistance in strengthening areas which may need improvement.

Fraud is a primary concern of regulations imposed by the DOL and IRS, and our auditors will make note of areas which could be subject to suspicion and assist in clarifying procedures to ensure all financial dealings are recorded and organized in a way which will allay any such suspicions. Our business is to help your business, and our goal is to ensure your ongoing ability to succeed by enabling your staff to keep their focus on achieving your primary mission.

Contact us today to learn how Hinkle + Landers, PC’s 401(k) audit professionals can help in the successful administration of your organization’s retirement plans.

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