401(k) Audit Services in Fresno, CA. For Fresno, CA businesses offering their employees retirement plans, completing a 401(k) audit can feel like a daunting task. Between regulation from the Department of Labor (DOL) and IRS, organizing necessary documents, and ensuring that your plan isn’t “top-heavy”, it can be overwhelming. However, with the right support, the 401(k) audit does not need to disrupt your business and disrupt your day-to-day operations.

At Correct Capital, we understand that 401(k) audits can create significant headaches even though they cannot be avoided. Our team will work with you with every aspect of document collection to meeting Form 5500 deadlines. Whether you're navigating your first audit in Fresno, CA, or hoping to optimize a previously cumbersome process, we're here to minimize the hassle. You can schedule a meeting with a member of our advisor team, fill out our online form, 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 required for Fresno, CA companies with more than 100 eligible participants in their 401(k) plan. Note: Even if you lack more than 100 employees actively enrolled in the plan, you are still required to have an audit if there are 100 who are eligible. The audit confirms that the retirement plan adheres to the regulations set 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, distributions, and plan activities are accurately represented.

While necessary for compliance, 401(k) audits can be complicated and time-consuming. Correct Capital helps Fresno, CA businesses navigate these audits by assisting with document collection, ensuring comprehension of compliance testing, as well as other audit processes. With an experienced team in your corner, handling the audit process can become a far more manageable task.

Why are 401(k) Audits Necessary for Fresno, CA Companies?

You are required to undergo a 401(k) audit for a variety of reasons, ensuring that retirement plans stay in line with federal regulations and safeguard both the employer and employees. Here’s why they are necessary:

  • Compliance with DOL and IRS Regulations: Audits ensure that your 401(k) plan follows all legal requirements established by the Department of Labor (DOL) and the IRS, with emphasis under the Employee Retirement Income Security Act (ERISA).
  • Preventing Discrimination: The audit checks if the plan does not unfairly favor higher-paid employees (often referred to as “top-heavy” testing) to ensure fairness across all participants.
  • Identifying Operational Issues: Audits often expose errors in contributions, withdrawals, or other facets of plan oversight, enabling you to resolve these issues to avoid penalties.
  • Filing Form 5500: The audit ensures proper and timely submission of Form 5500, an annual report that outlines the plan’s financial status, necessary for ensuring compliance with DOL and IRS regulations.
  • Contribution Limits: The audit ensures that employer and employee contributions do not exceed IRS contribution limits, helping to avoid excess contributions that could lead to penalties.
  • Fee Reasonableness: Auditors may evaluate plan fees to ensure they are reasonable and not overly expensive for participants. High fees can raise compliance concerns and affect how employees' investments and savings perform.
  • Fiduciary Oversight: The audit confirms that Fresno, CA employers are working to benefit plan participants, fulfilling their fiduciary responsibilities as required by ERISA.
  • Verification of Plan Documentation: Ensuring that the plan's documents, policies, and operational practices are consistent with regulatory guidelines is a critical part of the audit.

Types of 401(k) Audits

There are two main categories of 401(k) audits that Fresno, CA employers might come across, depending on the size and complexity 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 thorough audit necessary for most larger 401(k) plans. In a full-scope audit, the external auditor examines every part of the plan, including financial statements, adherence to Department of Labor (DOL) and IRS regulations, and participant data. The auditor examines supporting documentation for contributions, distributions, 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 pertain to plans with investments held 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 does not need to audit the investment information certified by the financial institution, which can significantly reduce the audit’s complexity and cost. This could make it a preferable choice for some Fresno, CA businesses, as long as they meet the criteria.

The type of audit you need depends on your plan’s particular characteristics, including the nature of its investments. At Correct Capital, we can help you understand which type of audit your plan requires and ensure you're fully prepared for whichever process is necessary.

401(k) Audit Pain Points for Fresno, CA Employers

While 401(k) audits are necessary for compliance, they frequently pose difficulties for Fresno, CA employers, particularly those managing larger plans. Below are several common challenges that businesses face:

  • Document Collection and Management: Collecting the required files, such as account statements, tax returns, and employee data, can be labor-intensive. 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 changing DOL, IRS, and ERISA regulations can prove difficult. Compliance errors can result in audit failures, sanctions, and costly corrections in the long run.
  • Discrimination Testing: Making sure that the plan isn’t top-heavy requires careful compliance checks and can lead to additional documentation and reporting.
  • Time and Resource Demands: Audit preparation pulls 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 correctly and before the deadline, which is a key component of 401(k) compliance. Failing to meet the submission date could cause penalties and complicate things for the company.

At Correct Capital, we recognize these obstacles and offer customized assistance to make the audit process in Fresno, CA more efficient. Whether it’s helping with document collection or confirming conformity 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 Fresno, CA employers looking to lower the complexity of a 401(k) audit, Multiple Employer Plans (MEP) and Pooled Employer Plans (PEP) can provide solutions. These plans permit various businesses to consolidate into one 401(k) plan, reducing the need for employer-specific audits.

  • Multiple Employer Plans (MEP): These plans combine several unrelated employers into one 401(k) plan, lowering the expenses and simplifying the management of managing and auditing individual plans. This setup allows Fresno, CA businesses to distribute the administrative responsibilities and potentially avoid the annual 401(k) audit altogether.
  • Pooled Employer Plans (PEP): Recently established, PEPs enable unrelated employers to enter a unified 401(k) plan managed by a pooled plan provider (PPP). This structure makes meeting regulations easier and cuts costs, making it a desirable option for Fresno, CA businesses seeking to simplify their retirement offerings.

Both MEPs and PEPs can substantially decrease the costs and time required for audits, all while maintaining adherence to regulations. Moving to one of these plans may be especially appealing to smaller businesses in Fresno, CA, who want to offer a 401(k) but find the costs and paperwork challenging.

Working with the Right Fresno, CA 401(k) Audit Team

401(k) audits can appear challenging, but choosing the right support can make all the difference. Collaborating with experts that has a firm grasp of both technical and practical elements of the audit process reduces the time and pressure you face. Here’s why partnering with the right experts matters:

  • Experience and Expertise: A skilled team will be familiar with the details of 401(k) audits, covering both full-scope and limited-scope audits. We help you navigate the documentation process and help identify areas of improvement within your plan.
  • Compliance Assurance: The right team ensures you keep up with evolving regulations, making sure your plan complies with all required guidelines.
  • Tailored Support: All 401(k) plans are distinct. An experienced team will collaborate with you to identify the unique needs of your plan and assist you in getting ready for your specific audit requirements. Correct Capital handles more than 37 plans in both small and large companies, representing 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: Preparing for a 401(k) audit can distract you significantly from day-to-day operations. The proper team will handle most of the administrative tasks, giving your HR and finance teams to focus on other priorities. 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 individual plan audit is no longer necessary, you're still required to comply with all the rules and regulations, but with fewer administrative responsibilities after plan year end.

*as of March 2024

Working with a knowledgeable, reliable team is key to ensuring your 401(k) audit in Fresno, CA runs efficiently and stress-free. With Correct Capital as your partner, you’ll have the confidence that your audit will be handled with precision and care.

Call Correct Capital for Help With Your 401(k) Audit in Fresno, CA

Meeting 401(k) audit requirements is both a legal requirement and an opportunity to ensure your Fresno, CA company's retirement plan stays advantageous to your employees. Correct Capital’s expertise in guiding Fresno, CA businesses navigate the 401(k) audit reduces the strain, allowing you to focus on your business while preventing penalties for non-compliance.

Contact Correct Capital today to arrange a session and allow us to assist you ensure your audit goes smoothly and efficiently. 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 Fresno, CA advisor team, contact us online, or call us at 877-930-401(k) to begin.


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