How Do I Correct Late Salary Deferral Deposits?

Posted by Christopher J. Ciminera, CPA, QKA Update – April 29, 2020 On Wednesday, April 29, 2020 the Employee Benefits Security Administration (EBSA) also posted a Disaster Relief Notice 2020-01. In this notice, the EBSA provides relief to plan sponsors regarding the possibility of lags in deposits due to the recent COVID-19 issues which was addressed in my blog below. … Continued

Are Retirement Savings More Secure under the SECURE Act?

Posted by Tyler Starr, CPA The passing of the Setting Every Community Up for Retirement Enhancement Act of 2019 (the SECURE Act) at the end of 2019 included significant changes impacting qualified retirement plans. In fact, the retirement plan industry has not seen such extensive changes in one act since the passing of the Pension Protection Act in 2006. President … Continued

How Can Auditors NOT be Responsible for the Financial Statements?

Posted by Maria T. Hurd, CPA, RPA What Auditors Don’t Do In our previous blog, Testing the work of a specialist in a retirement plan audit: how much expertise does the financial statement auditor need?, I explained that auditors cannot be expected to perform or completely re-perform the duties of other professionals, like the actuary, ERISA attorney, third-party administrator, and … Continued

Are Employer Matching Contributions for Student Loan Repayments Allowed?

Posted by Tyler Starr, CPA The IRS issued a private ruling on August 17, 2018, to allow an unnamed company to implement a new type of benefit for employees with student loan debt who were eligible to participate in its 401(k) plan. Prior to the private ruling, the company offered a 5% match contribution if employees contributed at least 2% … Continued

Large 401k Plan auditor

What is the Effect of Prohibited Transactions on the EBP Audit Opinion?

Posted by Maria T. Hurd, CPA, RPA The Truth Will Set You Free, but First, It Will Make You Miserable   When it comes to reporting prohibited transactions (PT) with parties-in-interest, it’s better to come clean, confess, and report on the supplementary schedules to the audited financial statements than to deny any wrongdoing. Withholding information results in inaccurate supplementary schedules, … Continued

Large 401k Plan auditor

The New EBP Audit Standard: Is Making Old Rules New Again Effective?

Posted by Maria T. Hurd, CPA, RPA A new auditing standard (expected to be issued in 2019), Forming an Opinion and Reporting on Financial Statements of Employee Benefit Plans Subject to ERISA (“Audit Standard” or “EBP SAS”) would be effective for audits performed starting in 2021 for plans with financial statement periods ending on or after December 15, 2020. Early … Continued

Large 401k Plan auditor

How will the new audit standard affect plan sponsors? – The Engagement Letter

Posted by Maria Hurd, CPA, RPA Updated May 22, 2019 First Things First: The Engagement Letter   The new audit standard, Forming an Opinion and Reporting on Financial Statements of Employee Benefit Plans Subject to ERISA, effective for plan years ending on or after December 15, 2020, will require certain management representations as a pre-condition for engagement acceptance. Specifically, auditors … Continued