Does your company have a retirement plan, such as a 401(k) or ESOP, and cover 100 or more participants? If so, you’re required by law to have an annual audit of the plan completed and filed with the IRS and Department of Labor (DOL). The annual audit, completed by a qualified and independent CPA firm, is required to be attached to the filing of the Form 5500 for retirement plans that meet the definition of a “large plan.”
A large plan is a retirement plan that includes over 100 eligible participants on the first day of the plan year. Eligible participants may be any of the following:
There are two exceptions to the large plan audit requirement:
The accurate determination of the number of eligible participants is critical, given that this number determines the need for an annual audit.
If you still have questions to determine if your retirement plan is subject to an annual audit, contact Karlie Johnson, CPA at firstname.lastname@example.org.
Karlie Johnson is a Director in the commercial audit and review service area at Redpath and Company. She assists with audited and reviewed financial statements in the manufacturing, construction, professional services and distribution industries. Karlie specializes in employee benefit plan audits and has provided public accounting services since 2005. If you need assistance with a benefit plan audit, contact Karlie at email@example.com or 651.255.9310More posts by Karlie Johnson