401(k) Audit Services in Wichita, KS. For Wichita, KS businesses that offer retirement plans, navigating a 401(k) audit can feel like a daunting task. 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, 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 cause considerable frustration and cannot be avoided. Our team will assist you for everything from document collection through making sure Form 5500 is filed correctly and on time. Whether you're preparing for your first audit in Wichita, KS, or looking to streamline a process that's usually a burden, 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, 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 mandated for Wichita, KS 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 must still undergo an audit if there are 100 who have the option to participate if they wanted. 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 evaluates the plan’s overall financial health, ensuring that contributions, distributions, and operations are properly documented.

While required for regulatory purposes, 401(k) audits can be challenging and lengthy. Correct Capital supports Wichita, KS businesses get ready for these audits by helping with document collection, helping clarify compliance testing, as well as other audit processes. With the right support, getting through the audit can become a far more manageable task.

Why are 401(k) Audits Necessary for Wichita, KS Companies?

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

  • Compliance with DOL and IRS Regulations: Audits ensure that your 401(k) plan adheres to 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 ensures that the plan disproportionately benefits higher-paid employees (often called “top-heavy” testing) in order to promote the plan treats all employees fairly and equally.
  • Identifying Operational Issues: Audits often expose errors in employee contributions, distributions, or additional plan operations, allowing you to correct these issues to avoid penalties.
  • Filing Form 5500: The audit confirms the accurate and on-time filing of Form 5500, a required document detailing 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, preventing excess contributions that could lead to penalties.
  • Fee Reasonableness: Auditors may examine plan fees to ensure they are reasonable and aren’t unnecessarily high for participants. High fees can raise compliance concerns and affect how employees' investments and savings perform.
  • Fiduciary Oversight: The audit verifies that Wichita, KS employers are serving the interests of plan participants, satisfying their fiduciary responsibilities as outlined in ERISA.
  • Verification of Plan Documentation: Confirming 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 primary types of 401(k) Audits that Wichita, KS 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 necessary for most larger 401(k) plans. In a full-scope audit, the third-party auditor evaluates all components of the plan, such as financial statements, conformance with Department of Labor (DOL) and IRS regulations, and participant data. The auditor reviews 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 are for 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 is not required to audit the investment information verified by the financial institution, which can significantly reduce the audit’s complexity and cost. This could make it a better alternative for some Wichita, KS businesses, if they satisfy the criteria.

The specific audit required is determined by your plan’s specific details, such as the nature of its investments. At Correct Capital, we will guide you to determine which type of audit your plan needs and help you be well-prepared for whichever process is necessary.

401(k) Audit Pain Points for Wichita, KS Employers

While 401(k) audits are necessary for compliance, they often present significant challenges for Wichita, KS employers, notably those overseeing more substantial retirement plans. Here are some of the key pain points that companies deal with:

  • Document Collection and Management: Collecting the right documents, such as account statements, tax returns, and employee data, can be a lengthy process. Employers frequently have difficulties to organize and deliver the necessary paperwork, especially for larger, more complex plans.
  • Compliance with Changing Regulations: Keeping pace with evolving DOL, IRS, and ERISA regulations is difficult. Compliance oversights can result in audit failures, penalties, and pricey amendments in the long run.
  • Discrimination Testing: Making sure that the plan isn’t top-heavy requires careful compliance checks and can result in additional documentation and reporting.
  • Time and Resource Demands: Getting ready for an audit pulls HR professionals, business owners, administrators, and others off of their core responsibilities, heightening pressure and diverting attention from day-to-day operations.
  • Form 5500 and Timely Submissions: Many businesses struggle to file Form 5500 properly and punctually, which is essential to 401(k) compliance. Failing to meet the submission date may lead to penalties and cause additional problems for the company.

At Correct Capital, we understand these challenges and deliver personalized help to make the audit process in Wichita, KS more efficient. Be it document collection or ensuring compliance 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 Wichita, KS employers hoping to ease the administrative burden of a 401(k) audit, Multiple Employer Plans (MEP) and Pooled Employer Plans can ease the process. 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 enables Wichita, KS businesses to distribute the administrative responsibilities and often sidestep the annual 401(k) audit altogether.
  • Pooled Employer Plans (PEP): Introduced more recently, PEPs enable unrelated employers to enter a unified 401(k) plan managed by a pooled plan provider (PPP). This structure streamlines the regulatory process and lowers expenses, making it appealing for Wichita, KS businesses seeking to simplify their retirement offerings.

Both MEPs and PEPs can significantly reduce audit-related costs and time commitments, all while maintaining adherence to regulations. Transitioning into an MEP or PEP may be highly beneficial for smaller firms in Wichita, KS, who wish to provide a 401(k) plan but are overwhelmed by costs and admin tasks.

Working with the Right Wichita, KS 401(k) Audit Team

401(k) audits can be daunting, but having the right team in place can make all the difference. Working with a team that has a firm grasp of both technical and practical elements of the audit process helps you avoid unnecessary delays and anxiety. Here’s why working with the right specialists is crucial:

  • Experience and Expertise: A highly experienced group will be familiar with the complexities 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: Each 401(k) plan has unique requirements. An experienced team will partner with you to grasp the unique needs of your plan and help you prepare for your specific audit requirements. Correct Capital is responsible for managing 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: Audit preparation can take considerable time away from day-to-day operations. The right partner will take on much of the administrative burden, allowing 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 participating in an MEP or 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 knowledgeable, reliable team is essential to making sure your 401(k) audit in Wichita, KS goes as smoothly as possible. With Correct Capital as your partner, you’ll feel secure that your audit will be handled with precision and care.

Call Correct Capital for Help With Your 401(k) Audit in Wichita, KS

Meeting 401(k) audit requirements is both a legal requirement and an important way to confirm your Wichita, KS company's retirement plan remains as beneficial as possible to your employees. Correct Capital’s experience in assisting Wichita, KS businesses through the 401(k) audit reduces the strain, letting you prioritize your business while avoiding fines 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 help with all aspects from document collection to compliance checks, guaranteeing your plan is prepared for success. You can schedule a meeting with a member of our Wichita, KS advisor team, contact us online, or call us at 877-930-401(k) to start the process.


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