We understand the complexities of pension plan auditing and the importance of smooth interaction between employers, custodians and third party administrators (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.

The Principal-in-Charge of 401(K) audit specialists has over 25 years experience and previously 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 principals dedicated to 401(K) and pension plan audits have over 75 years of collective experience.

Key 401(K) Audit Services

  • 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

Our 401(K) Audit Manager has over 35 years experience in supervising and administering employee benefit plans for our clients, who also benefit from our long and deep experience with the Department of Labor and the IRS.

Our 401(K) audit specialist shares a good working relationship with key Third Party Administrators (TPAs).

The dedicated 401(K) audit specialists can start your plan audit in February/March, well ahead of the final October 15 submission deadline. Since 401(K) audits are required for the majority of retirement plans in excess of one hundred active participants 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.

Expertise

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

Hardship Distributions

  • No Substantiation of Safe Harbor
  • Failure to Suspend Contributions for 12 Months
  • Not Obtaining All Other Distributions
  • Not Having Objective Criteria

We are also well-versed in Top-Heavy Requirements, Section 415, Prohibited Transactions, Partnership Issues (CODA), and Contingent Benefits.