401(k) audit employee benefit plan audit ebp audit

Your 401(k) Audit Solution

Employee Benefit plans require specialized 401(k) audits that, if signed off late, is incomplete, or incorrect, could result in significant penalties and plan termination. That is why CKH Group provides these audits that protect your most valuable assets – your employees.

As a leading CPA firm based in Atlanta, we take pride in offering 401(k) audits designed to:

    • Give you peace of mind through our accuracy and integrity
    • Maintain regulatory compliance with ERISA
    • Reduce risk or costly errors
    • Provide timely and efficient results

What Is a 401(k) Audit?

A 401(k) audit involves your company’s 401(k) plan whereby an external auditor ensures the plan meets the ever-changing guidelines and regulations set by the IRS, Department of Labor, ERISA, and the Social Security Administration. It is required by federal law after reaching a certain number of eligible participants in your 401(k) plan.

What are the 401(k) Audit Requirements?

An audit of a 401(k) plan becomes obligatory when it qualifies as a “large” plan according to Form 5500 purposes. In 2023, this designation encompasses plans with over 100 eligible participants with an account balance on the initial day of the plan year. This includes participants who have left the plan but still maintains a balance. Furthermore, these plans require the submission of specific financial statements alongside their annual Form 5500 submission.

What is the 80/120 Rule?

The 80/120 Rule is an exception to the above requirements. It stipulates that plans between 80 and 120 participants at the beginning of the plan year are allowed to file Form 5500 under the same category as the year prior. This would mean that if a plan was a ‘small plan’ the previous year and remains within the 80/120 range, it will still be considered a ‘small plan’ and not require an audit report.

Other Types of Employee Benefit Plan Audits (EBP Audits)

Aside from 401(k)s, there are other items that may require an EBP audit. An employee benefit plan can include pension and profit sharing as well. These audits are intended to gauge the ability of the employee benefit plan to cover current and future benefits and payments. These audits must employ generally accepted audit standards (GAAS) and adhere to ERISA and Department of Labor regulations as well.

Eon van Wyk CFO

Why Choose CKH Group?

CKH Group’s 401(k) audits are designed to empower organizations with confidence in their financial reporting and decision-making while maintaining compliance with federal regulations.

With CKH Group, you’re not just getting a CPA firm; you’re gaining a trusted partner committed to your success. Discover the CKH Group advantage, where excellence, integrity, and expertise come together to create a powerful assurance partnership for you. Contact us today to explore how our External Audits can add value to your organization.

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Employee Benefit Plan Audits