Starting Early On Your 401k Plan Audit is Key to a Painless, Frustration Free Audit
I know, you are looking at the title with utter disbelief. However, hang with me for a minute. Would you rather have an early start to ensure you have an awesome, smooth audit experience? Or, would you rather wait and start a month or two before the filing deadline (calendar year end plan 5500s are due on July 31st, with an extension it is moved to October 15th)? Of course, I’m very proactive and would love to start as early as possible with all my clients to ensure there are no issues or hiccups, which unfortunately can happen during an audit. For instance, trying to find pertinent forms the auditor requests, employee turnover in the HR or payroll department, and even finding time to deal with pesky auditors can be challenging enough. Do these issues sound familiar?
The earlier you can start on your audit, the better. Many firms that have dedicated teams to benefit plan audits can start now (like me). Those that have teams that are doing other industry audits or even tax work may have a difficult time starting now. They would have to wait until the summer months to get to your audit. Another important aspect of starting early is if the auditor identifies an issue, for instance, in the census that is provided to them or with the contributions detail. Issues can be ascertained early in the process so corrections can be made sooner rather than later.
Starting early is key to a smooth, successful audit. So, are you ready to get your audit started? Contact us and we can make this process easy for you.
And the companions, known as the 401k.9s