Art of the Qualified Plan Audit

“Everybody Makes Mistakes, Everybody Has Those Days”… Excess Amounts- Retirement plan provisions regarding eligibility, how to count hours of service, contributions, the definition of compensation, automatic enrollment, etc. require so much detailed recordkeeping and coordination between payroll personnel, HR, and the plan’s service providers, that the probability that a plan sponsor will allocate too much … Continued

Each year, I review the audit requirement rules with pension professionals in all the specialties: investment advisors, third party administrators, recordkeepers, plan consultants, and more. This year, after our conversation, Renee Mrosowski from Summit Group Retirement Planners sent me an excellent summary of our conversation for my review. Her clear methodology is worth sharing, so … Continued

Large retirement plans that require an audit often merge-in the assets from small plans in connection with a stock acquisition or a merger of the plan-sponsor companies. When large plans merge-in assets from another plan, auditors will have to consider whether previous operational errors of the merged plan could result in potentially tainted assets that … Continued

Back to Basics: Final Form 5500 Rules Intuitively, it makes sense that a retirement plan that is subject to reporting requirements will have a Form 5500 filing obligation as long as the plan has assets. According to the Form 5500 instructions, a plan sponsor can file a Final Form 5500 “If all assets under the … Continued

Posted by Maria T. Hurd, CPA, RPA The New Voluntary Fiduciary Correction Program went live on March 17, 2025. Sometimes, Voluntary Can Feel Mandatory Since 2002, the VOLUNTARY Fiduciary Correction Program (“VFCP”) has given plan sponsors with delinquent deferral deposits the OPTION to submit a filing under the DOL’s Correction Program, in exchange for the … Continued

As to Deferral Deposits, Define Timely: As Soon as You Can; ASAP; Chop, Chop; Pronto; What Are You Waiting For?!?! Tell Me What You Want, What You Really, Really Want The timeliness of deferral deposits — a topic that has been beaten to death with a stick and is still the source of discussion at … Continued

Updated 3.31.2025 Which Large Welfare Plans Need to Hire a CPA Auditor? Why do some large welfare plans have to engage an independent qualified public accountant to audit the plan’s financial statements and others have no audit requirement? The answer lies in whether the welfare plan is funded or unfunded. Funded Welfare Plans: Defined Funded … Continued

Posted by Maria T. Hurd, CPA, RPA As we discussed in our blog “Delaware’s Senator Roth and his Roth Account Legacy,” about 93% of 401(k), 403(b), and 457(b) plans offer a Roth deferral option, up from 62% a decade ago. The Roth 401(k) option became available at the beginning of 2006, while the traditional 401(k) … Continued

First Steps Toward Rothification: the Roth Catch-up Requirement for High Earners As we explained in our previous blog, Delaware’s Senator Roth and his Roth Account Legacy, Rothification refers to a policy shift requiring the use of Roth after-tax contributions or accounts. The Setting Every Community Up for Retirement Enhancement Act (SECURE) 2.0 may very well … Continued

Being from Delaware, I remember Senator Roth, the lone U.S. Representative from Delaware, and his two giant St. Bernards walking down Market Street, greeting all his constituents. Who knew that this affable man would leave behind a legacy that will benefit millions of people for generations to come? At the age of 76, he created … Continued