401(k) Audits

Generally, a 401(k) audit is required when you have 100 or more participant account balances on the first day of the plan year, except if you have a plan that is in its first year. Then an audit is required when you have 100 or more participant account balances on the last day of the plan year. Please keep in mind that the following discussion only applies to plans that have all of their assets in “Qualifying Plan Assets,” such as assets held by insurance companies, banks, and trust companies.

If no audit is required, plans have 7 business days after the paycheck date to deposit the contributions to the plan. With an audit requirement, the rule changes to as soon as the funds can be segregated from the company's general assets. If a company can make their tax deposit within 3 days of the paycheck date, then the department of labor will rule that the plan deposit should be made similarly.

There are many factors, rules and regulations to be considered. Feel free to call us today to see how we can help with your 401(k) audit needs.