Tod Christiansen, CPA
Director, 401(k) Audit Team

"You never win if you ignore the Federal Government. So, when your 401(k) plan reaches 120 employees (or if your new plan includes 100 employees at startup), the government is going to require that the plan be audited. And, while the expense of another audit is about the last thing management wants, ensuring your plan meets today's regulatory standards is an absolute must."

"Our clients understand that all audits--and audit firms--are not created equally. Hunter's compliance team understands and has the requisite experience to perform these audits with precision and cost effectiveness. We get the job done, we get it done on time and we get it done on budget."

NOTE: To ensure compliance with requirements imposed by the IRS, we inform you that any tax advice contained in this communication (including attachments) is not intended or written to be used, and cannot be used, for the purpose of avoiding penalties assessed under the Internal Revenue Code.
 

401(k) Audits
   Is your plan in compliance?

The popularity of 401(k) plans has exploded in the last decade. In tandem with the growth has followed increased Government regulation (from both the IRS and the Department of Labor) to ensure these plans are being managed properly and that investments are made as promised and when promised. The rules are extremely stringent, and non-compliance can become an expensive problem for your company. Completing the IRS Form 5500 may not suffice as compliance.

Many companies do not realize that, as their organization grows beyond 120 employees participating in their plan, the government requires their 401(k) to have an annual compliance audit of their financial statements to accompany their Form 5500 submission. For companies starting a new plan, the threshold for an audit lower; so if your new plan has 100 participants at start-up, an audit will be required.

If this is a concern to you, our firm is ready to help. Hunter Group has a growing number of 401(k) audit clients. Our early experience in this area provides our clients with the benefits that come with familiarity with the process. We know how to work with the key investment institutions, and we are familiar with their agreement documents. 

Hunter Group is also a member of the AICPA Employee Benefit Plan Audit Quality Center, a resource that ensures our clients we have policies and procedures in place for conducting employee benefit plan audits.