401(k) Audit San Antonio, TX

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401(k) Audit Services in San Antonio, TX. For San Antonio, TX businesses that offer retirement plans, navigating a 401(k) audit can feel 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 favor higher-paid employees, it can be overwhelming. 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 and cannot be avoided. Our team will partner with you with every aspect of document collection through meeting Form 5500 deadlines. Whether you're preparing for your first audit in San Antonio, TX, or looking to streamline a process that's usually a burden, we're here to make it as simple and stress-free as possible. 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 annual review necessary for San Antonio, TX companies who have more than 100 eligible participants in their 401(k) plan. Note: Even if you do not have more than 100 employees actively participating 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 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 employee contributions, distributions, and plan activities are faithfully recorded.

While necessary for compliance, 401(k) audits can be challenging and time-consuming. Correct Capital helps San Antonio, TX businesses get ready for these audits by aiding in document collection, assisting with understanding compliance testing, as well as other audit processes. With the right support, handling the audit process can become a much easier process.

Why are 401(k) Audits Necessary for San Antonio, TX Companies?

You must undergo a 401(k) audit for a variety of reasons, to ensure retirement plans adhere to federal regulations and protect both the employer and employees. Here’s why they are necessary:

  • Compliance with DOL and IRS Regulations: The purpose of audits is to confirm that your 401(k) plan adheres to all legal requirements established by the Department of Labor (DOL) and the IRS, particularly under the Employee Retirement Income Security Act (ERISA).
  • Preventing Discrimination: The audit verifies whether the plan does not unfairly favor 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, withdrawals, or other facets of plan oversight, enabling you to resolve these issues to avoid fines.
  • Filing Form 5500: The audit confirms 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 confirms that employer and employee contributions stay within IRS contribution limits, helping to avoid excess contributions that may result in penalties.
  • Fee Reasonableness: Auditors may examine plan fees to verify they are reasonable and not overly expensive for participants. High fees can raise compliance concerns and negatively impact how employees' investments and savings perform.
  • Fiduciary Oversight: The audit verifies that San Antonio, TX employers are serving the interests of plan participants, satisfying their fiduciary responsibilities as mandated by ERISA.
  • Verification of Plan Documentation: Verifying that the plan's documents, policies, and operational practices are consistent with regulatory guidelines is a key part of the audit.

Types of 401(k) Audits

There are two main categories of 401(k) audits that San Antonio, TX employers could face, based on the specific details 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 necessary for most larger 401(k) plans. In a full-scope audit, the external auditor evaluates all components of the plan, such as financial statements, compliance with Department of Labor (DOL) and IRS regulations, and participant data. The auditor examines supporting documentation for contributions, withdrawls, and other transactions to confirm correctness and adherence to regulations.
  • Section 103(a)(3)(C)) Audit: Previously called a "Limited Scope Audit," these apply to plans with investments overseen 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 certified by the financial institution, which can substantially lower the audit’s complexity and cost. This could make it a more attractive option for some San Antonio, TX businesses, if they satisfy the criteria.

The type of audit you need is based on your plan’s particular characteristics, such as the nature of its investments. At Correct Capital, we will guide you to determine which type of audit your plan is subject to and make sure you're ready for both audit types.

401(k) Audit Pain Points for San Antonio, TX Employers

While 401(k) audits must be conducted to ensure compliance, they often present significant challenges for San Antonio, TX employers, especially those overseeing more substantial retirement plans. Here are some of the key pain points that companies deal with:

  • Document Collection and Management: Assembling the required files, such as account statements, tax returns, and employee data, can be labor-intensive. Employers frequently have difficulties to organize and file the necessary paperwork, especially for larger, more complex plans.
  • Compliance with Changing Regulations: Staying up to date with evolving DOL, IRS, and ERISA regulations is difficult. Compliance oversights can cause audit failures, penalties, and costly corrections down the line.
  • Discrimination Testing: Verifying that the plan doesn't favor higher earning employees requires careful compliance checks and can lead to additional documentation and reporting.
  • Time and Resource Demands: Getting ready for an audit takes HR professionals, business owners, administrators, and others off of their core responsibilities, heightening pressure and distracting them from day-to-day operations.
  • Form 5500 and Timely Submissions: Many businesses have difficulty with file Form 5500 accurately and on time, which is essential to 401(k) compliance. Failing to meet the submission date may lead to penalties and complicate things for the company.

At Correct Capital, we understand these challenges and deliver personalized help to make the audit process in San Antonio, TX smoother. Be it 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 San Antonio, TX employers seeking to reduce the administrative burden of a 401(k) audit, Multiple Employer Plans (MEP) and Pooled Employer Plans (PEP) can provide solutions. These plans permit various businesses to participate in a unified 401(k) plan, frequently removing 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 permits San Antonio, TX businesses to distribute the administrative responsibilities and potentially avoid the annual 401(k) audit altogether.
  • Pooled Employer Plans (PEP): A more recent development, PEPs permit unrelated employers to participate in a collective 401(k) plan administered by a pooled plan provider (PPP). This structure simplifies compliance and reduces costs, making it appealing for San Antonio, TX businesses looking to streamline their retirement offerings.

Both MEPs and PEPs can significantly reduce audit-related costs and time commitments, while still ensuring compliance with federal regulations. Switching to these types of plans may be particularly attractive for small companies in San Antonio, TX, who want to offer a 401(k) but find the costs and paperwork challenging.

Working with the Right San Antonio, TX 401(k) Audit Team

401(k) audits can seem difficult, 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 team of experts understands the details of 401(k) audits, including both full-scope and limited-scope audits. We can guide you through the documentation process and pinpoint potential improvements within your plan.
  • Compliance Assurance: The right team helps you remain up to date with 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 identify the unique needs of your plan and guide you in preparing for your specific audit requirements. Correct Capital is responsible for managing 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: Preparing for a 401(k) audit can consume a lot of time from day-to-day operations. The ideal support will take on much of the administrative burden, giving your HR and finance teams the freedom to concentrate on other tasks. Correct Capital simplifies the entire process, reducing the pressure on your internal team.
  • MEPs and PEPs Expertise: For businesses enrolled in an MEP or PEP, while an individual plan 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

Partnering with a knowledgeable, reliable team is key to ensuring your 401(k) audit in San Antonio, TX is as painless as possible. With Correct Capital by your side, you’ll be assured that your audit will be completed efficiently and accurately.

Call Correct Capital for Help With Your 401(k) Audit in San Antonio, TX

Meeting 401(k) audit requirements is both a legal requirement and an opportunity to ensure your San Antonio, TX company's retirement plan remains as beneficial as possible to your employees. Correct Capital’s expertise in guiding San Antonio, TX 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 let us help you get ready for a streamlined, effective audit. Our team of experts will help with all aspects from document collection to compliance checks, ensuring your plan is fully optimized. You can schedule a meeting with a member of our San Antonio, TX advisor team, contact us online, or call us at 877-930-401(k) to get started.


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