401(k) Audit Services in Miami, FL. For Miami, FL businesses offering their employees retirement plans, completing a 401(k) audit can feel like a challenging process. Between regulation from the Department of Labor (DOL) and IRS, collecting extensive documentation, and ensuring that your plan doesn't favor higher-paid employees, 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 be a major source of stress even though they are mandatory. Our team will assist you with every aspect of document collection through meeting Form 5500 deadlines. Whether you're preparing for your first audit in Miami, FL, or hoping to optimize a previously inefficient process, we're here to minimize the hassle. You can schedule 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 necessary for Miami, FL companies with at least 100 eligible participants in their 401(k) plan. Note: Even if you do not 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 ensures that the retirement plan complies with the regulations set by the Department of Labor (DOL) and the Employee Retirement Income Security Act (ERISA). It evaluates the plan’s financial integrity, ensuring that contributions, withdrawals, and plan activities are faithfully recorded.

While necessary to meet legal requirements, 401(k) audits can be complex and lengthy. Correct Capital supports Miami, FL businesses navigate these audits by assisting 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 Miami, FL Companies?

You are required to undergo a 401(k) audit for several reasons, ensuring that retirement plans remain compliant 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 mandated by the Department of Labor (DOL) and the IRS, especially under the Employee Retirement Income Security Act (ERISA).
  • Preventing Discrimination: The audit ensures that the plan isn't overly advantageous to higher-paid employees (often known as “top-heavy” testing) to guarantee the plan treats all employees fairly and equally.
  • Identifying Operational Issues: Audits often expose errors in contributions, withdrawals, or other aspects of plan management, providing an opportunity to fix these issues before they result in fines.
  • Filing Form 5500: The audit guarantees proper and timely submission of Form 5500, a yearly filing that outlines 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 limits for the year, helping to avoid excess contributions that may result in penalties.
  • Fee Reasonableness: Auditors may evaluate plan fees to verify they are reasonable and don’t pose an excessive cost for participants. Overpriced fees could lead to compliance concerns and negatively impact the long-term growth of employee retirement savings.
  • Fiduciary Oversight: The audit ensures that Miami, FL employers are working to benefit plan participants, fulfilling their fiduciary responsibilities as mandated by ERISA.
  • Verification of Plan Documentation: Confirming that the plan's documents, policies, and operational practices are consistent with regulatory guidelines is one of the most important parts of the audit.

Types of 401(k) Audits

There are two primary types of 401(k) Audits that Miami, FL employers might come across, depending on factors such as the size and nature 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 independent auditor examines every part of the plan, such as 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 ensure accuracy and compliance.
  • Section 103(a)(3)(C)) Audit: Previously referred to as a "Limited Scope Audit," these are for plans with investments overseen by a qualified, regulated financial institution (such as a bank or insurance company). The employer may qualify for a limited-scope audit. In this type, the auditor is not required to audit the investment information certified by the financial institution, which can greatly lessen the audit’s complexity and cost. This can make it a more attractive option for some Miami, FL businesses, as long as they meet the criteria.

The kind of audit your plan needs is based on your plan’s specific details, including the nature of its investments. At Correct Capital, we are able to assist you figure out which type of audit your plan needs and help you be well-prepared for both audit types.

401(k) Audit Pain Points for Miami, FL Employers

While 401(k) audits must be conducted to ensure compliance, they often present significant challenges for Miami, FL employers, especially those managing larger plans. These are some of the major issues that companies deal with:

  • Document Collection and Management: Gathering the necessary paperwork, such as account statements, tax returns, and employee data, can be time-consuming. Employers often struggle to organize and submit the necessary paperwork, notably in the case of larger, more complex plans.
  • Compliance with Changing Regulations: Keeping pace with shifting DOL, IRS, and ERISA regulations can prove difficult. Compliance errors can result in audit failures, sanctions, and pricey amendments down the line.
  • Discrimination Testing: Ensuring that the plan isn’t top-heavy requires careful compliance checks and can result in additional documentation and reporting.
  • Time and Resource Demands: Audit preparation takes HR professionals, business owners, administrators, and others away from their core responsibilities, adding strain and distracting them from everyday business tasks.
  • Form 5500 and Timely Submissions: Many businesses face challenges when they file Form 5500 accurately and on time, which is a key component of 401(k) compliance. Late submissions could cause penalties and create further issues for the company.

At Correct Capital, we recognize these obstacles and offer customized assistance to streamline the audit procedure in Miami, FL. 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 Miami, FL employers looking to lower the administrative burden of a 401(k) audit, Multiple Employer Plans (MEP) and Pooled Employer Plans (PEP) can provide solutions. These plans enable different employers to participate in a unified 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 allows Miami, FL businesses to share the administrative responsibilities and often sidestep the annual 401(k) audit altogether.
  • Pooled Employer Plans (PEP): Introduced more recently, PEPs enable unrelated employers to join a shared 401(k) plan managed by a pooled plan provider (PPP). This structure simplifies compliance and lowers expenses, making it attractive for Miami, FL businesses looking to streamline their retirement offerings.

Both MEPs and PEPs can dramatically cut down the expenses and time involved in audits, all while maintaining adherence to regulations. Switching to these types of plans may be especially appealing to smaller businesses in Miami, FL, who want to offer a 401(k) but find the costs and paperwork challenging.

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

401(k) audits can appear challenging, but choosing the right support can make all the difference. Collaborating with experts 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 highly experienced group understands the complexities of 401(k) audits, including both full-scope and limited-scope audits. We can guide you through 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, making sure your plan complies with all required guidelines.
  • Tailored Support: All 401(k) plans are distinct. An experienced team will partner with you to understand the unique needs of your plan and assist you in getting ready for your specific audit requirements. Correct Capital currently manages over 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: Getting ready for a 401(k) audit can consume a lot of time from day-to-day operations. The right partner will handle most of the administrative tasks, enabling your HR and finance teams the freedom to concentrate on other tasks. Correct Capital makes the process smoother, reducing the pressure on your internal team.
  • MEPs and PEPs Expertise: For businesses participating in an MEP or PEP, while an individual plan audit is no longer mandated, you're still obligated to adhere to all the rules and regulations, just with less administrative burdens after plan year end.

*as of March 2024

Collaborating with a knowledgeable, reliable team is crucial for guaranteeing your 401(k) audit in Miami, FL is as painless as possible. With Correct Capital by your side, you’ll have the confidence that your audit will be conducted thoroughly and on time.

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

Meeting 401(k) audit requirements is both a legal requirement and an opportunity to verify your Miami, FL company's retirement plan stays advantageous to your employees. Correct Capital’s experience in assisting Miami, 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 arrange a session and allow us to assist you prepare for a smooth, efficient audit. Our team of experts will support you with everything, including document collection to compliance checks, ensuring your plan is fully optimized. You can schedule a meeting with a member of our Miami, FL advisor team, contact us online, or call us at 877-930-401(k) to begin.


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