Is your 401(k) plan “large” or “small”? —for audit purposes, that is.

by cpaadmin | Jun 15, 2024 | 401k Compliance, 401k Plan Audit, Audit Procedures, Preparing for a 401(k) audit, Regulations & Policies

Here’s how to determine the number of qualifying participants for your 401(k) audit.   The total number of participants with balances in your retirement plan drives how the IRS Code and the Department of Labor see your plan. For audit purposes, this definition...

Effective 1-1-24: New treatment of LTPT employees mandated by IRS

by cpaadmin | Dec 15, 2023 | 401k Compliance, Employee Addition, Plan Sponsors, Record Retention, Regulations & Policies, SECURE Act

It’s official! The IRS (finally!) released guidance on the new treatment of LTPT employees (long-term part-time) vis-a-vis your 401(k) plan. And not a moment too soon! Changes are effective 1-1-24. Here’s what you need to know to treat LTPT employees properly in the...

Got M&A? Don’t forget to consider 401(k) plans in your merger or acquisition.

by cpaadmin | Aug 15, 2023 | 401k Compliance, Merger & Acquisitions, Record Retention, Uncategorized

Don’t get surprised at audit time. Stay compliant when handling the 401(k) or benefits plans during a merger or acquisition. Merging or holding companies? Buying a business? “What will happen to our 401(k)?” is a question that rarely comes up. But the last...

What are Agreed-Upon Procedures, and when do you need them?

by cpaadmin | Jul 15, 2023 | 401k Compliance

Don’t require a full-scale audit? There’s an alternative: agreed-upon procedures. In our last blog, we discussed changes to 401(k) audit requirements that mean many small and mid-sized businesses won’t need a formal annual 401(k) audit. To summarize: As a...

A new DOL policy means you may not need a 401(k) plan audit. (Here’s what you need to know).

by cpaadmin | Jun 15, 2023 | 401k Audit Oversight, 401k Compliance, 401k Plan Audit, 5500, Audit Procedures

A new DOL policy means you may not need a 401(k) plan audit. On February 23, the Department of Labor, IRS, and Pension Benefit Guarantee Corporation unveiled major changes to employee benefits plan reporting. Small businesses rejoice as a new Department of Labor rule...

Review BEFORE the audit: not every income type is the same

by cpaadmin | Apr 15, 2023 | 401k Compliance, 401k Compliance Error, 401k Plan Mistakes, Audit Procedures, Eligible compensation discrepancies, Plan Sponsors

Imagine this: The sales team has the best quarter ever. Five of seven team members win record-breaking performance bonuses. To keep the momentum going, they are sent to a team-building retreat in Cancun. The company covers many expenses along the way but still comes...