In celebration of this season of gratitude, it’s a good time to zoom out and look at why we conduct 401(k) plan audits in the first place.
Yes, audits are required by the Department of Labor (DOL) for plans with 100 or more participants with balances. Yes, there are regulatory boxes to check. But there’s a deeper reason behind all of it—one rooted in care, stewardship, and responsibility.
Because at the end of the day, a well-run retirement plan isn’t just a compliance win. It’s a promise kept to your employees.
Let’s talk about what it means to build a culture of compliance—and how your annual 401(k) audit fits into that bigger picture.
Compliance is more than a checklist
In a healthy compliance culture, the audit isn’t just a once-a-year event that gets boxed up and filed away after Form 5500 is submitted. It’s part of a year-round rhythm that supports accuracy, transparency, and ultimately, employee well-being.
When we talk to plan sponsors, especially those who’ve been through multiple audits, a common theme emerges: they don’t see compliance as a burden. They see it as a responsibility—and even an honor. Because the audit gives them a chance to pause, reflect, and strengthen the processes that support one of their most important employee benefits.
Why we audit
Regulatory requirements are only part of the story. The real “why” behind the audit is protecting the people behind the plan—the team members who drive the success of your company.
An independent audit can uncover missed contributions, late deposits, incorrect matches, eligibility errors, or overlooked amendments. These aren’t just technical mistakes—they’re issues that could impact real people’s retirement security. That’s why taking time to correct errors and improve internal controls matters so much.
Viewed through that lens, audits aren’t just about satisfying the IRS or DOL. They’re an opportunity to improve and protect what matters most: your employees’ futures.
So, how do you build a culture of compliance?
Here are a few key practices we’ve seen across organizations that go beyond checking the box:
1. Make compliance a team effort
Involve your internal stakeholders—HR, payroll, finance, and leadership—in conversations about plan oversight. Everyone plays a role, and shared ownership creates accountability.
Even better? Create an internal compliance calendar with key deadlines, so nothing sneaks up on you.
2. Review findings as a committee
Once your audit is complete, carve out time to review the results with your plan committee. Use it to discuss what’s working, where you’ve improved, and where there may still be gaps.
It’s not about pointing fingers—it’s about learning and leveling up.
3. Turn lessons into action
If errors were found, document the root cause and the correction. Then go a step further: ask what changes can be made to ensure they don’t happen again.
This might mean revising internal processes, adding checks and balances, or ensuring third-party vendors are meeting their responsibilities.
➡️ Want help thinking through your next steps after an audit? Check out What happens after the 401(k) audit?
4. Show your work
Maintain good documentation practices year-round—not just for audit season. Organized records, clear communication, and timely documentation go a long way toward ensuring transparency if questions ever arise.
➡️ For tips from a seasoned plan sponsor on this, check out Time-saving tips from the other side of the 401(k) audit: A plan sponsor’s perspective.
Gratitude in action
In the spirit of this season of giving thanks, it’s worth remembering that compliance, at its heart, is an act of gratitude. It’s a way to honor the trust your employees place in you to manage their retirement benefits responsibly.
We’re grateful for the clients who share that vision and treat the audit not just as a requirement, but as a chance to do things right.
At Cassell Plan Audits, we’re here to support that culture with guidance, clarity, and care—so you can keep your promises and protect your people.
Need help strengthening your internal controls—or simply preparing for a smooth audit season? Contact us today.
Photo by Marcus Wöckel
