Category: EBP Plan Audits
What are the Reporting Requirements for a Pooled Employer Plan?
November 14, 2023
In our previous blog post, Pooled Employer Plans (PEPs): The Basics, we outlined the basics of a PEP and will not dig into the details of the financial reporting requirements for these plans. The administrator of a PEP must file an annual Form 5500, Annual Returns/Reports of Employee Benefit Plan, to which the PEP administrator … Continued
IRS Announces Increases on Benefits and Contributions Dollar Limitations for 2024
November 03, 2023
The IRS has announced cost-of-living adjustments that should be noted for retirement planning purposes. Below is a chart that outlines employee benefit plan limits for 2024: Plan Limits RETIREMENT & SOCIAL SECURITY 2024 Limit 2023 Limit 2022 Limit Section 401(k), 403(b), 457(b) Elective Deferrals $23,000 $22,500 $20,500 401(k) or 403(b) Catch-Up Contributions $7,500 $7,500 $6,500 … Continued
Pooled Employer Plans (PEPs): The Basics
October 31, 2023
PEPs were established in section 101 of the Setting Every Community Up for Retirement Enhancement Act of 2019 (SECURE Act), which amended ERISA and the IRC, to allow unrelated employers to join a defined contribution retirement plan maintained by a pooled plan provider (PPP) acting as the plan’s administrator and named fiduciary. A PEP, as … Continued
When it Comes to Joining a PEP, Don’t be the Hot Potato
October 17, 2023
Originally published in the Summer 2023 Issue of Delaware Banker (Delaware Bankers Association). Let’s Start With the Basics – What is a Pooled Employer Plan (PEP)? PEPs were established in section 101 of the Setting Every Community Up for Retirement Enhancement Act of 2019 (SECURE Act), which amended ERISA and the IRC, to allow unrelated … Continued
What Information Do You Need for Our 401(k) Audit?
September 27, 2023
Nervous apprehension tends to overwhelm new 401(k) audit clients who don’t know how involved they will need to be in the document production for the audit. Often, they are hopeful that one or more of their service providers will “take care of everything” as they promised. The bottom line is that the extent of the … Continued
Could I Fail my First 401(k)/403(b) Plan Financial Statement Audit?
September 19, 2023
Death by a thousand cuts. That’s what initial 401(k) and 403(b) audit clients fear their first financial statement audit will feel like. Fear of the unknown leads the human mind to worst case scenarios. Could I fail the audit? Sure, anything is possible. Will I fail my first audit? Not likely. Even if the audit … Continued
Counting what Counts, Counts the Auditors Out!
April 18, 2023
Money Talks: Price Sometimes Trumps Value Small retirement plans are exempt from the financial statement audit retirement for a reason: not because they don’t need the oversight or the help, but because audits are not practical, affordable, or cost-effective for them. In the real world, money talks. If small plans or their plan sponsors had … Continued
Learning How to Count Again
March 29, 2023
Retirement plan administration is not a costless endeavor. Plan sponsors must administer the retirement plan following plan provisions, legislative requirements, and participant elections. To help administer the plan, plan sponsors hire service providers to help with recordkeeping, custody of assets, investment advisor tracking, and auditing the plan. Regulatory authorities want to promote retirement readiness with … Continued
Accountant’s Opinion Selection on Form 5500
March 02, 2023
Plan sponsors, third-party administrators, and other Form 5500 preparers take note! DOL representatives indicated that in some instances Part III – Accountant’s Opinion, Line 3(a) and 3(b) of the Schedule H is being filled out incorrectly. Marcus Aron (Division of Accounting Services) and Scott Albert (Division of Reporting Compliance) indicated at the 2023 Joint TE/GE … Continued
401(k), 403(b), 457(b): Why Are the Rules Different?
April 07, 2022
Posted By: Maria Hurd, CPA Why Ask Why? Why should the rules that determine how and how much a person can save for retirement be different depending on whether the person works for a government entity, a nonprofit, or a for-profit employer? People are people, and their retirement needs are not different based on what … Continued