401(k) Audit Fayetteville, NC

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401(k) Audit Services in Fayetteville, NC. For Fayetteville, NC businesses that offer retirement plans, navigating a 401(k) audit can seem like a daunting task. Between compliance requirements from the Department of Labor (DOL) and IRS, organizing necessary documents, and ensuring that your plan doesn't favor higher-paid employees, there are many factors to consider. However, with the right support, the 401(k) audit can be made much easier and disrupt your day-to-day operations.

At Correct Capital, we understand that 401(k) audits can create significant headaches and are a regulatory requirement. Our team will partner with you with every aspect of document collection through meeting Form 5500 deadlines. Whether you're getting ready for your initial audit in Fayetteville, NC, or hoping to optimize a process that's usually a burden, we're here to minimize the hassle. You can ask for a meeting with a member of our advisor team, contact us online, or call us at 877-930-401(k) to get started.


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Correct Capital Wealth Management's office is physically located in St. Louis, MO, but we serve clients throughout the United States in both personal financial planning and corporate retirement plans.

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About 401(k) Audits

A 401(k) audit is an yearly review mandated for Fayetteville, NC companies with at least 100 eligible participants in their 401(k) plan. Note: Even if you don’t have more than 100 employees actively enrolled in the plan, you are still required to have an audit if there are 100 who have the option to participate if they wanted. The audit confirms that the retirement plan follows the regulations mandated by the Department of Labor (DOL) and the Employee Retirement Income Security Act (ERISA). It reviews the plan’s financial integrity, ensuring that contributions, distributions, and plan activities are faithfully recorded.

While necessary for compliance, 401(k) audits can be complex and demanding. Correct Capital supports Fayetteville, NC businesses prepare for these audits by assisting with document collection, assisting with understanding compliance testing, etc... With an experienced team in your corner, getting through the audit can become a far more manageable task.

Why are 401(k) Audits Necessary for Fayetteville, NC Companies?

You need to undergo a 401(k) audit for several reasons, ensuring that retirement plans stay in line with federal regulations and protect both the employer and employees. Here’s why you need them:

  • Compliance with DOL and IRS Regulations: The purpose of audits is to confirm that your 401(k) plan adheres to all legal requirements mandated by the Department of Labor (DOL) and the IRS, especially under the Employee Retirement Income Security Act (ERISA).
  • Preventing Discrimination: The audit verifies whether the plan disproportionately benefits higher-paid employees (often called “top-heavy” testing) to ensure the plan treats all employees fairly and equally.
  • Identifying Operational Issues: Audits can uncover errors in employee contributions, withdrawals, or other facets of plan oversight, providing an opportunity to fix these issues so they don't lead to penalties.
  • Filing Form 5500: The audit ensures the accurate and on-time filing of Form 5500, a required document summarizing the plan’s financial status, which is required to maintain compliance with DOL and IRS regulations.
  • Contribution Limits: The audit verifies that employer and employee contributions stay within IRS limits for the year, preventing excess contributions that could lead to penalties.
  • Fee Reasonableness: Auditors may review plan fees to ensure they are reasonable and aren’t unnecessarily high for participants. High fees can raise compliance concerns and affect the long-term growth of employee retirement savings.
  • Fiduciary Oversight: The audit confirms that Fayetteville, NC employers are serving the interests of plan participants, fulfilling their fiduciary responsibilities as outlined in ERISA.
  • Verification of Plan Documentation: Ensuring that the plan's documents, policies, and operational practices are in compliance with regulatory guidelines is one of the most important parts of the audit.

Types of 401(k) Audits

There are two main categories of 401(k) audits that Fayetteville, NC employers may encounter, depending on factors such as the size and nature of their plan. These types of audits are determined by the structure of the retirement plan, as well as its investment and participant details.

  • Full-Scope Audit: This is the most detailed audit mandated for most larger 401(k) plans. In a full-scope audit, the third-party auditor evaluates all components of the plan, including financial statements, adherence to Department of Labor (DOL) and IRS regulations, and participant data. The auditor reviews supporting documentation for contributions, withdrawls, and other transactions to verify that everything is accurate and in compliance.
  • Section 103(a)(3)(C)) Audit: Formerly known as a "Limited Scope Audit," these apply to plans with investments held by a qualified, regulated financial institution (such as a bank or insurance company). The employer may take advantage of a limited-scope audit. In this type, the auditor does not need to audit the investment information verified by the financial institution, which can substantially lower the audit’s complexity and cost. This can make it a preferable choice for some Fayetteville, NC businesses, as long as they meet the criteria.

The type of audit you need is based on your plan’s specific details, including the nature of its investments. At Correct Capital, we will guide you to understand which type of audit your plan requires and ensure you're fully prepared for both audit types.

401(k) Audit Pain Points for Fayetteville, NC Employers

While 401(k) audits are required to meet legal obligations, they can create major obstacles for Fayetteville, NC employers, notably those offering bigger 401(k) plans. Below are several common challenges that employers encounter:

  • Document Collection and Management: Collecting the required files, such as account statements, tax returns, and employee data, can be a lengthy process. Employers may find it challenging to organize and file the necessary paperwork, especially for larger, more complex plans.
  • Compliance with Changing Regulations: Remaining compliant with evolving DOL, IRS, and ERISA regulations can be challenging. Compliance errors can cause audit failures, sanctions, and expensive fixes later on.
  • Discrimination Testing: Ensuring that the plan isn’t top-heavy involves detailed compliance reviews and can lead to additional documentation and reporting.
  • Time and Resource Demands: Audit preparation takes HR professionals, business owners, administrators, and others off of their core responsibilities, increasing stress and distracting them from everyday business tasks.
  • Form 5500 and Timely Submissions: Many businesses struggle to file Form 5500 accurately and on time, which plays a critical role in 401(k) compliance. Failing to meet the submission date may lead to penalties and create further issues for the company.

At Correct Capital, we are aware of the difficulties involved and offer customized assistance to make the audit process in Fayetteville, NC smoother. From assisting with document collection or confirming conformity with regulations, our team helps take the burden off your shoulders.

401(k) Audits for Multiple Employer Plans (MEP) and Pooled Employer Plans (PEP)

For Fayetteville, NC employers hoping to ease the workload of a 401(k) audit, Multiple Employer Plans (MEP) and Pooled Employer Plans can offer relief. These plans enable different employers to consolidate into one 401(k) plan, often eliminating employer-specific audits.

  • Multiple Employer Plans (MEP): These plans pool together several unrelated employers into one 401(k) plan, reducing the cost and complexity of managing and auditing individual plans. This setup allows Fayetteville, NC businesses to distribute the administrative responsibilities and potentially avoid the annual 401(k) audit altogether.
  • Pooled Employer Plans (PEP): Introduced more recently, PEPs allow unrelated employers to participate in a collective 401(k) plan managed by a pooled plan provider (PPP). This structure simplifies compliance and reduces costs, making it appealing for Fayetteville, NC businesses looking to streamline their retirement offerings.

Both MEPs and PEPs can dramatically cut down the expenses and time involved in audits, while ensuring regulatory compliance. Switching to these types of plans may be especially appealing to smaller businesses in Fayetteville, NC, who want to offer a 401(k) but find the costs and paperwork challenging.

Working with the Right Fayetteville, NC 401(k) Audit Team

401(k) audits can seem difficult, but choosing the right support changes everything. Partnering with professionals that understands both the technical and practical aspects of the audit process helps you avoid unnecessary delays and anxiety. Here’s why partnering with the right experts matters:

  • Experience and Expertise: A skilled team understands the complexities of 401(k) audits, including both full-scope and limited-scope audits. We will assist you with the documentation process and highlight areas for enhancement within your plan.
  • Compliance Assurance: The right team will help you stay on top of evolving regulations, confirming your plan adheres to all regulations.
  • Tailored Support: Each 401(k) plan has unique requirements. An experienced team will partner with you to grasp the unique needs of your plan and guide you in preparing for your specific audit requirements. Correct Capital currently manages over 37 plans in both small and large companies, and represents over $212 million in total plan assets across the United States, enabling us to understand the specifics of any company 401(k) plan.
  • Saving Time and Resources: Preparing for a 401(k) audit can distract you significantly from day-to-day operations. The ideal support will shoulder a lot of the admin work, allowing your HR and finance teams the freedom to concentrate on other tasks. Correct Capital simplifies the entire process, easing the load for your internal team.
  • MEPs and PEPs Expertise: For businesses in a Multiple Employer Plan (MEP) or Pooled Employer Plan (PEP), while an separate audit is no longer mandated, you're still responsible for following all the rules and regulations, though with a reduced administrative workload after plan year end.

*as of March 2024

Collaborating with a experienced, reliable team is crucial for guaranteeing your 401(k) audit in Fayetteville, NC runs efficiently and stress-free. With Correct Capital supporting you, you’ll have the confidence that your audit will be completed efficiently and accurately.

Call Correct Capital for Help With Your 401(k) Audit in Fayetteville, NC

Adhering to 401(k) audit regulations is both a legal requirement and an opportunity to verify your Fayetteville, NC company's retirement plan continues to offer maximum benefit to your employees. Correct Capital’s expertise in guiding Fayetteville, NC businesses complete the 401(k) audit helps ease the burden, letting you prioritize your business while preventing penalties for non-compliance.

Contact Correct Capital today to schedule a consultation and allow us to assist you prepare for a smooth, efficient audit. Our team of experts will assist with everything from document collection through to compliance checks, ensuring your plan is fully optimized. You can schedule a meeting with a member of our Fayetteville, NC advisor team, contact us online, or call us at 877-930-401(k) to begin.


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