At 401(k) Plan Audit CPA, we know plan sponsors have important questions about audits, Form 5500 filings, and ongoing compliance. This FAQ page answers the most common questions we hear from clients, helping you better understand your responsibilities and avoid costly mistakes.
Frequently Asked Questions
401(k) Audit & Compliance Frequently Asked Questions
General 401(k) Audit Questions
Who needs a 401(k) plan audit?
Plans with 100 or more eligible participants at the beginning of the plan year generally require an independent 401(k) audit.
What is included in a 401(k) audit?
An audit reviews plan financial statements, contributions, distributions, participant eligibility, compliance with DOL and IRS rules, and operational controls.
How long does a 401(k) audit take?
Most audits take 4–8 weeks, depending on the plan’s size, complexity, and how quickly documents are provided.
How much does a 401(k) audit cost?
Costs vary depending on complexity. We provide transparent, competitive pricing tailored to your plan.
What happens if I don’t complete a required audit?
Failure to complete a required audit can result in rejected Form 5500 filings, financial penalties, and regulatory scrutiny.
Form 5500 Filing Questions
What is Form 5500?
Form 5500 is an annual report required by the DOL, IRS, and PBGC that provides details on your plan’s financial condition and operations.
When is Form 5500 due?
The deadline is the last day of the seventh month after the plan year ends (usually July 31 for calendar-year plans). Extensions are available by filing Form 5558.
What are the penalties for late Form 5500 filing?
Penalties can reach $250 per day for late or incomplete filings.
Can you prepare and file Form 5500 for us?
Yes—we provide Form 5500 preparation and electronic filing through the EFAST2 system.
401(k) Plan Consulting Questions
What does a 401(k) consultant do?
We provide guidance on fiduciary responsibilities, compliance requirements, and plan operations to help sponsors avoid risks and improve efficiency.
Do smaller plans need consulting?
Yes—even plans under the 100-participant audit threshold benefit from consulting to stay compliant and prepare for future growth.
How often should my 401(k) plan be reviewed?
At least once a year. Annual reviews help identify issues early and reduce the risk of noncompliance.
Additional Compliance Questions
What documents are required for a 401(k) audit?
Plan documents, trust statements, payroll records, participant data, and service provider reports are typically required.
What are common mistakes in 401(k) plans?
Late contributions, incorrect eligibility tracking, missed distributions, and filing errors are among the most frequent issues.
Do you provide services nationwide?
Yes—we provide 401(k) audits, Form 5500 preparation, and consulting services to businesses across the United States.
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.
