Plan Audits
Services Resources Plan Audits Investment Policy

 

 

Retirement plans are subject to random audit by government agencies - the Internal Revenue Service and the Department of Labor. Audits are sometimes triggered by information reported on the annual Form 5500 filing or by disgruntled employees who believe their retirement account is mismanaged. It's wise to anticipate the information that might be requested under audit.

Internal Revenue Service

Information requested by IRS audits will generally include: 

Documents - copies of the Plan, Trust, and Amendments.
Determination Letter- if applicable
5500 filing for the investigation year, prior and subsequent years
Payroll records used to determine Plan eligibility
Employee Census
Participant contribution allocation schedules
Participant account records and vested interest calculations
Top Heavy Test
ADP Test - for 401k arrangements
ACP Test - 401k with matching contributions
Multiple Use Test - 401k with matching contributions
410(b) coverage test
Form 1120 - U.S. Corporate Tax Return
Department of Labor Audits

The D.O.L. may focus on:

the timeliness of 401k deposits after payroll deduction
proper documentation of Participant loans
fidelity bond coverage

The D.O.L. may ask for the following:

Plan document and amendments
IRS determination letter
Summary Plan Description
Summary Annual Report
Form 5500
Fidelity Bond 
A summary of contributions and loan payments and dates deposits made
the Plan's written Investment Policy
listing of assets held at the end of the Plan year

To find out more about any of these the audit process, or to learn about programs designed to correct Plan defects, complete the response form below.

 

Information Request Form

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Revised: November 30, 2000 .