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Rick Covert, CPA

Employee Benefit Plan Audits -401 (k) Audits

We understand the complexities of pension plan auditing and the importance of smooth interaction amongst the employer, the custodian and the third party administrator (TPA).

Our 401 (k) Audit Specialists provide unparalleled service to our clients:

• We offer a team of dedicated 401 (k) audit specialists who handle all 401 (k) plans, VEBA, and welfare benefit plan audits
• Our Audit Partner in charge of the 401 (k) audit specialists has in excess of 25 years experience and served on the American Institute of Certified Public Accountants" Employee Benefit Plans committee where he co-authored the AICPA's  "Audit and Accounting Guide: Audits of Employee Benefit Plans".
• Our Audit Partners dedicated to 401 (k) and pension plan audits have in excess of 75 years experience.
• Our 401 (k) Audit Manager has in excess of 35 years supervising and administering the employee benefit plans for our clients
• Our clients benefit from our long and deep experience with the Department of Labor and the IRS
• The dedicated 401 (k) Audit Specialists can start your plan audit in February/march, well ahead of the final October 15 submission deadline 
• Our 401 (k) audit specialist share a good working relationship with the key Third Party Administrators (TPAs)

Our 401 (k) Audit Specialists are well-versed in:

• Audit planning ~ analytical procedures, accounting estimates, fraud
• Auditing the statement of net assets available for benefits
• Auditing the statement of changes in net assets available for benefits
• ERISA and SEC requirements
• Evaluating internal control
• Financial statement disclosures
• Preparing the auditor’s report
• Special audit considerations
• Supplementary schedules

Since 401 (k) audits are required for the majority of retirement plans in excess of one hundred active partitipants at the beginning of any plan year, we are well versed in working with these plans as well as all the supplemental schedules and specific reporting required by ERISA, DOL and Generally Accepted Accounting Principles (GAAP). MBAF is  a member of the AICPA Employee Benefit Plan Audit Quality Center.

Our 401 (k) Audit Group knows well the qualification requirements and is always aware of such issues as prohibited transactions, deemed distributions and reporting failures:

• Violations relating to Distributions eligible for rollover

  • Failure to Provide Direct Rollover Option
  • Failure to Provide Timely Tax Information
  • Improper or No Withholding
  • Improper Reporting on 1099R
• Violations relating to ADP/ACP Testing
  • Failure to Include All Eligible Employees in ADP Testing
  • Failure of the ADP/ACP/MU Tests
• Loans
  • Exceeding the $50,000 Limit
  • Not Meeting Amortization and/or Repayment Requirements
  • Exceeding Loan Terms
  • Default without collection
  • Improper Reporting
• Contingent Benefits
• Hardship Distributions
  • No Substantiation of Safe Harbor
  • Failure to Suspend Contributions for 12 Months
  • Not Obtaining All Other Distributions
  • Not Having Objective Criteria
• Top-Heavy Requirements
• Section 415
• Prohibited Transactions
• Partnership Issues (CODA)