At 401(k) Plan Audit CPA, we help plan sponsors maintain compliance with DOL, IRS, and ERISA rules. Whether you’re preparing for an audit, filing Form 5500, or managing fiduciary responsibilities, our 401(k) compliance tips will help you reduce risk and stay ahead of regulatory requirements.
Compliance Tips
401(k) Compliance Tips & Best Practices
Why 401(k) Compliance Matters
Compliance is critical for both plan sponsors and participants. Failure to comply with regulations can result in:
- Costly DOL and IRS penalties
- Increased fiduciary liability
- Rejected Form 5500 filings
- Loss of employee trust
By following best practices and working with experienced CPAs, businesses can ensure accuracy, efficiency, and peace of mind.
Top Compliance Tips for Plan Sponsors
Keep Accurate Records
Maintain detailed payroll records, plan documents, and trust statements. Accurate recordkeeping is the foundation of every successful audit and filing.
Monitor Employee Eligibility
Ensure employees are enrolled in the plan on time based on eligibility rules. Missteps here are one of the most common compliance errors.
Ensure Timely Contributions
Employee deferrals must be deposited into the plan as soon as administratively possible. Late contributions can trigger penalties and corrective action.
Review Service Provider Reports
Don’t assume third-party administrators (TPAs) catch everything. Regularly review reports and reconciliations to confirm accuracy.
Stay Ahead of Filing Deadlines
Mark your calendar for Form 5500 filing deadlines (typically July 31 for calendar-year plans) and request an extension if needed.
Common Compliance Mistakes to Avoid
Filing Form 5500 late or with errors
Missing eligibility enrollments
Incorrect calculation of employer match contributions
Failure to document fiduciary decisions
Inadequate internal controls around plan operations
Avoiding these mistakes saves time, money, and regulatory headaches.
How Our Firm Helps You Stay Compliant
At 401(k) Plan Audit CPA, compliance is at the heart of everything we do. Our services include:
- Independent 401(k) audits to ensure accuracy and regulatory compliance
- Form 5500 preparation to meet filing requirements and avoid penalties
- 401(k) plan consulting to strengthen internal controls and fiduciary oversight
With our proactive guidance, you can focus on running your business while we handle the complexities of benefit plan compliance.
Frequently Asked Questions (401k Plan Audit FAQ)
Who needs a 401(k) plan audit?
Any plan with 100 or more eligible participants must generally undergo an annual independent audit.
What is Form 5500 and why is it important?
Form 5500 is a required filing that details your plan’s financial condition, operations, and investments. It’s key to maintaining compliance with DOL and IRS rules.
What are the penalties for late or incorrect Form 5500 filing?
Penalties can exceed $250 per day and add up quickly. Professional preparation helps you stay on track.
How do I choose the right employee benefit plan auditor?
Look for a CPA firm that specializes in employee benefit plan audits, has industry experience, and maintains strong communication throughout the process.
Can you help with smaller plans not yet requiring audits?
Yes—we provide 401(k) consulting to help smaller plans stay compliant and prepared as they grow.
Schedule Your 401(k) Audit Consultation Today
Don’t leave compliance to chance. At 401(k) Plan Audit CPA, we specialize in 401(k) audits, Form 5500 preparation, and employee benefit plan consulting. Whether you’re preparing for your first audit or managing a large retirement plan, our CPAs provide the expertise and peace of mind you need.
