DOL Limited Scope Audits

DOL Audit Quality Study and Recommendations for Improvement

The Department of Labor (DOL) released its report on employee benefit plan audits (Assessing the Quality of Employee Benefit Plan Audits) on May 28, 2015. As I discussed in my last blog, DOL Audit Quality Study: Employee Benefit Plan Auditors Are not Making the Grade, the report is not favorable to auditors. The American Institute of Certified Public Accountants is making an effort to address these quality issues through its Enhancing Audit Quality initiative.

DOL Audit Quality

DOL Audit Quality Study: Employee Benefit Plan Auditors Are not Making the Grade

At last week’s American Institute of Certified Public Accountants (AICPA) Employee Benefit Plan (EBP) Conference, the Department of Labor (DOL) compared auditing retirement plans to brain surgery. The analogy was meant to indicate that a patient would not seek out a general practitioner to perform brain surgery, due to the highly complex nature of the service and the lack of experience the general medical practitioner would have at performing the service.

Compensation Issues - Delaware CPA

Compensation Issues – Revisited

We are more than halfway through the retirement plan audit season and we have noticed a number of common errors occurring with compensation. I previously discussed these issues in my blog series “Compensation: The Missing Link – Part 1” and “Compensation: The Missing Link – Part 2,” but we want to revisit the issue, since we are seeing this error occur on a rather consistent basis.

Fixing Common Plan Mistakes - Delaware CPA

Fixing Common Plan Mistakes – Failure to Obtain Spousal Consent

Posted by Maria T. Hurd, CPA The Rule When plans have a Qualified Joint and Survivor Annuity default form of benefit, or when a plan offers life annuity options, spousal consent must be obtained for any distribution or loan out of the plan, except when the plan provides for involuntary cash-outs for balances amounting to $5,000 or less. Qualified plans … Continued

Correcting Hardship Distribution - Delaware CPA

Avoiding the Hardship of Correcting Hardship Distribution Violations

Administering hardship distributions correctly is important to prevent the hardship of completing a correction of an error in administration. Often, plan officials assume that their third party administrator is collecting all the information necessary for the approval and proper processing of a hardship, when that is not always the case.

Emergency Distributions - Delaware 401k Auditor

Unforeseeable Emergency Distributions from 457(b) Plans

State or local governments and organizations that are tax-exempt under IRC Section 501(c) can establish a 457(b) plan to allow their employees to defer income taxation on retirement savings, similar to how the more popular 401(k) plans operate, but with some important differences, including the availability of hardship distributions.

Partial Plan Termination - Delaware 401k Auditor

The Basics of Partial Plan Terminations

When employer-initiated personnel reductions occur and it reduces the number of plan participants by 20% or more, a partial termination of a qualified plan is deemed to have occurred.