Retirement Plan Audit Support
A 401(k) audit is not really an accounting exercise. It is a test of whether your plan was administered the way the plan document says. Retirement plan audit support means the records, reconciliations and corrections are ready before the auditor asks.
When your plan needs an audit
The 100-participant rule, counted correctly
Since the 2023 Form 5500 changes, the audit threshold is based on participants with an account balance at the beginning of the plan year, not everyone eligible. Many plans that expected an audit no longer need one, and some that ignored it now do.
The 80–120 rule
If your count lands between 80 and 120, you may generally keep filing in the same category as the prior year. This is where sponsors most often file the wrong schedule.
Short plan years and mergers
Plan mergers, spin-offs and controlled-group changes reset the count and the filing. These get missed because nobody owns the plan calendar.
What our audit support covers
The auditor request list, pre-assembled
Signed plan document and amendments, determination or opinion letter, SPD, trust and recordkeeper statements, payroll registers, contribution remittance detail, distribution and loan files, testing results and prior-year Form 5500.
Payroll-to-plan reconciliation
We tie compensation and deferrals from payroll to the trust, participant by participant. This is where audit findings actually originate: wrong compensation definition, missed eligibility, or deferrals withheld and deposited late.
Corrections before the auditor arrives
Late deferral deposits corrected with lost earnings and filed through VFCP, missed deferral opportunities corrected under EPCRS, and operational failures documented. Self-corrected issues are far cheaper than audit findings.
Filing and signature
As your 3(16) plan administrator, Admin316 assembles the audit package, coordinates with the independent qualified public accountant and signs the Form 5500 as administrator.
Frequently asked questions
Does Admin316 perform the audit?
No. The audit must be performed by an independent qualified public accountant. Admin316 provides the plan-side support: audit-ready data, reconciliations, corrections and the signed Form 5500.
When does a 401(k) plan require an audit?
Generally when the plan has 100 or more participants with account balances at the start of the plan year, subject to the 80–120 rule that lets many plans keep their prior-year filing status.
What are the most common audit findings?
Late deferral deposits, an incorrect definition of compensation, missed eligibility and entry dates, undocumented hardship distributions, and loans that fall out of compliance.
What happens if we file late or file the wrong schedule?
Form 5500 penalties run high per day per filing, but the DOL’s Delinquent Filer Voluntary Compliance Program reduces them substantially when you come forward first. We handle that filing.
