401(k) Audit Fort Lauderdale, FL

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401(k) Audit Services in Fort Lauderdale, FL. For Fort Lauderdale, FL businesses offering their employees retirement plans, navigating a 401(k) audit can seem like an uphill battle. Between compliance requirements from the Department of Labor (DOL) and IRS, collecting extensive documentation, and ensuring that your plan doesn't disproportionately benefit higher-paid employees, there is a lot to keep track of. However, with the right support, the 401(k) audit can be made much easier and interfere with your company’s daily operations.

At Correct Capital, we understand that 401(k) audits can be a major source of stress even though they are a regulatory requirement. Our team will partner with you with every aspect of document collection through making sure Form 5500 is filed correctly and on time. Whether you're navigating your first audit in Fort Lauderdale, FL, or seeking to simplify a previously cumbersome process, we're here to ensure it’s as smooth and easy as possible. You can book 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 annual review necessary for Fort Lauderdale, FL companies who have 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 must still undergo an audit if there are 100 who are eligible. The audit ensures that the retirement plan follows the regulations mandated by the Department of Labor (DOL) and the Employee Retirement Income Security Act (ERISA). It assesses the plan’s financial integrity, ensuring that employee contributions, withdrawals, and plan activities are properly documented.

While required for regulatory purposes, 401(k) audits can be complex and lengthy. Correct Capital assists Fort Lauderdale, FL businesses prepare for these audits by helping with document collection, assisting with understanding compliance testing, etc... With the right support, getting through the audit can become a far more manageable task.

Why are 401(k) Audits Necessary for Fort Lauderdale, FL Companies?

You must undergo a 401(k) audit for multiple purposes, to ensure retirement plans stay in line with federal regulations and safeguard both the employer and employees. Here’s why you need them:

  • Compliance with DOL and IRS Regulations: A 401(k) audit guarantees that your 401(k) plan adheres to all legal requirements set 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 isn't overly advantageous to higher-paid employees (often referred to as “top-heavy” testing) in order to promote the plan treats all employees fairly and equally.
  • Identifying Operational Issues: Audits may reveal errors in contributions, distributions, or other aspects of plan management, allowing you to correct these issues so they don't lead to penalties.
  • Filing Form 5500: The audit confirms proper and timely submission of Form 5500, a required document summarizing the plan’s financial status, necessary for ensuring compliance with DOL and IRS regulations.
  • Contribution Limits: The audit confirms that employer and employee contributions remain within IRS contribution limits, reducing the risk of excess contributions that could lead to penalties.
  • Fee Reasonableness: Auditors may review plan fees to ensure they are reasonable and don’t pose an excessive cost for participants. Excessive fees may prompt compliance concerns and negatively impact how employees' investments and savings perform.
  • Fiduciary Oversight: The audit verifies that Fort Lauderdale, FL employers are acting in the best interest of plan participants, fulfilling their fiduciary responsibilities as mandated by ERISA.
  • Verification of Plan Documentation: Ensuring that the plan's documents, policies, and operational practices are aligned 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 Fort Lauderdale, FL employers could face, based on the specific details of their plan. The audit type typically depends on the number of participants and the complexity of the investments in the plan.

  • Full-Scope Audit: This is the most detailed audit required for most larger 401(k) plans. In a full-scope audit, the external auditor examines every part of the plan, including financial statements, conformance with Department of Labor (DOL) and IRS regulations, and participant data. The auditor evaluates supporting documentation for contributions, distributions, and other transactions to confirm correctness and adherence to regulations.
  • Section 103(a)(3)(C)) Audit: Previously referred to as a "Limited Scope Audit," these pertain to plans with investments managed by a qualified, regulated financial institution (such as a bank or insurance company). The employer may be eligible for a limited-scope audit. In this type, the auditor is not required to audit the investment information verified by the financial institution, which can greatly lessen the audit’s complexity and cost. This may make it a preferable choice for some Fort Lauderdale, FL businesses, provided they meet the criteria.

The specific audit required is based on your plan’s particular characteristics, including the nature of its investments. At Correct Capital, we are able to assist you determine which type of audit your plan requires and ensure you're fully prepared for whichever process is necessary.

401(k) Audit Pain Points for Fort Lauderdale, FL Employers

While 401(k) audits must be conducted to ensure compliance, they can create major obstacles for Fort Lauderdale, FL employers, notably those overseeing more substantial retirement plans. These are some of the major issues that employers encounter:

  • Document Collection and Management: Gathering the necessary paperwork, such as account statements, tax returns, and employee data, can be a lengthy process. Employers may find it challenging to sort through and submit the necessary paperwork, particularly with larger, more complex plans.
  • Compliance with Changing Regulations: Remaining compliant with shifting DOL, IRS, and ERISA regulations is difficult. Compliance missteps can lead to audit failures, penalties, and expensive fixes in the long run.
  • Discrimination Testing: Making sure that the plan isn’t top-heavy requires careful compliance checks and can necessitate additional documentation and reporting.
  • Time and Resource Demands: Preparing for an audit draws HR professionals, business owners, administrators, and others away from their core responsibilities, adding strain and diverting attention from everyday business tasks.
  • Form 5500 and Timely Submissions: Many businesses have difficulty with file Form 5500 accurately and on time, which is a key component of 401(k) compliance. Late submissions could cause penalties and complicate things for the company.

At Correct Capital, we are aware of the difficulties involved and deliver personalized help to streamline the audit procedure in Fort Lauderdale, FL. Be it document collection or ensuring compliance with regulations, our team takes on much of the work for you.

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

For Fort Lauderdale, FL employers hoping to ease the workload of a 401(k) audit, Multiple Employer Plans (MEP) and Pooled Employer Plans can provide solutions. These plans permit various businesses to consolidate into one 401(k) plan, frequently removing employer-specific audits.

  • Multiple Employer Plans (MEP): These plans consolidate several unrelated employers into one 401(k) plan, reducing the cost and complexity of managing and auditing individual plans. This setup permits Fort Lauderdale, FL businesses to share the administrative responsibilities and often sidestep the annual 401(k) audit altogether.
  • Pooled Employer Plans (PEP): Introduced more recently, PEPs permit unrelated employers to enter a unified 401(k) plan overseen by a pooled plan provider (PPP). This structure makes meeting regulations easier and lowers expenses, making it appealing for Fort Lauderdale, FL businesses looking to streamline their retirement offerings.

Both MEPs and PEPs can substantially decrease the costs and time required for audits, while ensuring regulatory compliance. Moving to one of these plans may be especially appealing to smaller businesses in Fort Lauderdale, FL, that want to provide a 401(k) but struggle with the costs and administrative burdens.

Working with the Right Fort Lauderdale, FL 401(k) Audit Team

401(k) audits can appear challenging, but selecting the proper assistance can make all the difference. Partnering with professionals that is well-versed in both the technicalities and practicalities of the audit process can save you significant time and stress. Here’s why having the right experts on your side is important:

  • Experience and Expertise: A team of experts understands the details of 401(k) audits, encompassing full-scope and limited-scope audits. We help you navigate the documentation process and highlight areas for enhancement within your plan.
  • Compliance Assurance: The right team ensures you keep up with evolving regulations, ensuring that your plan meets all necessary standards.
  • Tailored Support: Every 401(k) plan is different. An experienced team will partner with you to understand the unique needs of your plan and help you prepare 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, which allows us to understand the nuances of any company 401(k) plan.
  • Saving Time and Resources: Audit preparation can distract you significantly from day-to-day operations. The ideal support will take on much of the administrative burden, giving your HR and finance teams to focus on other priorities. Correct Capital makes the process smoother, reducing the pressure on your internal team.
  • MEPs and PEPs Expertise: For businesses in a Multiple Employer Plan (MEP) or Pooled Employer Plan (PEP), while an audit specific to your plan is not required, you're still obligated to adhere to all the rules and regulations, but with fewer administrative responsibilities after plan year end.

*as of March 2024

Partnering with a experienced, reliable team is crucial for guaranteeing your 401(k) audit in Fort Lauderdale, FL runs efficiently and stress-free. With Correct Capital supporting you, you’ll be assured that your audit will be conducted thoroughly and on time.

Call Correct Capital for Help With Your 401(k) Audit in Fort Lauderdale, FL

Adhering to 401(k) audit regulations is both a mandatory process and an opportunity to verify your Fort Lauderdale, FL company's retirement plan continues to offer maximum benefit to your employees. Correct Capital’s experience in assisting Fort Lauderdale, FL businesses navigate the 401(k) audit lightens the load, enabling you to concentrate on your operations while ensuring you're not penalized for non-compliance.

Contact Correct Capital today to book a meeting and allow us to assist you get ready for a streamlined, effective audit. Our team of experts will help with all aspects from document collection to compliance checks, making sure your plan is set up for success. You can schedule a meeting with a member of our Fort Lauderdale, FL advisor team, contact us online, or call us at 877-930-401(k) to get started.


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