Posted by Maria T. Hurd, CPA, RPA Every year, retirement plan audit season starts in early April, shortly after discrimination tests are complete and audit packages for the more straightforward plans become available. Human resources managers, payroll managers, and chief financial officers at the plan sponsor collaborate to provide the auditor with payroll, personnel data, and financial backup needed for … Continued
Author Archives: Maria T. Hurd, CPA
How do the new Required Minimum Distribution rules under the SECURE Act affect financial statement audits?
Posted by Maria T. Hurd, CPA, RPA The New Law The SECURE Act (Setting Every Community Up for Retirement Enhancement) changed the age at which non-5% owners who have terminated employment with a retirement plan sponsor must take required minimum distributions (RMD). Participants who reach age 70½ after 2019 must take their first RMD by the April 1 of the … Continued
Posted By Maria T. Hurd, CPA, RPA Our Benefit Plan Audit Team, as well as the entire BLS CPA Team, is continuously monitoring the rapidly changing landscape in an effort to provide you with updates related to legislative relief or changes that may affect you, your business, or your clients. As provisions or changes directly related to benefit plans occur, … Continued
How does the SECURE Act allow Penalty-Free Distributions from Retirement Plans for Childbirth or Adoption Expenses?
Posted by Maria T. Hurd, CPA, RPA Updated 3.26.2020 Children are a financial hardship!!! The IRS has finally recognized it by adding a new type of penalty-free distribution from defined contribution retirement plans: the Qualified Birth or Adoption Distribution (QBOAD), effective January 1, 2020. The new provision is optional, so plan sponsors will need to amend their plans to permit … Continued
Could Inclusion of Long-Term, Part-Time Employees under the Secure Act Trigger a Financial Statement Audit?
Posted by Maria T. Hurd, CPA, RPA Large Plans Require Financial Statement Audits Generally, plans with at least 100 participants on the first day of the plan year must engage an independent qualified public accountant to perform an audit of the plan’s financial statements. The audit report, financial statements, note disclosures, and supplementary schedules are filed as an attachment to … Continued
Posted by Maria T. Hurd, CPA, RPA Inquiring minds want to know – Are the Bonuses In or Out? How Can I Withhold from a Gift Card? It’s Not Cash! … and more … The Problem The use of an incorrect definition of compensation for contribution purposes continues to be listed as the most common error the IRS finds during … Continued
Posted by Maria T. Hurd, CPA, RPA Tips and Traps of Compensation: Part III – Double Jeopardy: No Match on Catch-Ups and No True-Up In our previous two blogs, The Trouble with True-Ups or Lack of True-Ups and What’s the Catch with Administering Catch-Up Contributions, we went over the basic rules and potential pitfalls of administering true-ups and catch-ups. When … Continued
Posted by Maria T. Hurd, CPA, RPA Tips and Traps of Compensation: Part II – What’s the Catch with Administering Catch-Up Contributions? In the first part of our Tips and Traps of Compensation Series, we talked about The Trouble with True-Ups or Lack of True-Ups. Part II talks about administering catch-up contributions. Definition of Catch-Up Contribution As stated on the … Continued
Posted by Maria T. Hurd, CPA, RPA Does your 401(k) or 403(b) plan auditor belong to the AICPA’s Employee Benefit Plan Audit Quality Center (EBPAQC)? To demonstrate their commitment to quality in the performance of ERISA audits, 2,600 CPA firms, about a third of the firms that perform EBP audits, have become members of the Employee Benefit Plan Audit Quality … Continued
Posted by Maria T. Hurd, CPA, RPA The AICPA Employee Benefit Plan Digital Badges: How can plan sponsors evaluate prospective auditors who are equally credentialed with digital badges? Is your auditor a Jack of all trades, but a master of none? As the results of the DOL studies on audit quality shift the industry focus to the qualifications of employee … Continued