Art of the Qualified Plan Audit

403(b)-Specific IQPA Audit Considerations Let’s start with a little background. Code Section 403(b) came first. In 1958, Congress made available a tax deferred savings device for employees of certain section 501(c)(3) organizations by adding section 403(b) to the Internal Revenue Code. Although deferred compensation plans for municipal employers had already existed for over a decade, … Continued

Understanding the Accrual Basis of Accounting for Revenue Recognition Unlike the cash basis of accounting, which recognizes revenue and expenses only when money changes hands, the accrual basis accounts for transactions when they are earned or incurred, regardless of the actual cash flow. The Revenue Recognition Principle dictates that revenue should be recognized in the … Continued

ERISA Section 3(14) defines a Party-in-Interest more broadly than FASB Accounting Standards Codification (ASC) 850 defines Related Parties. Specifically, 29 CFR 1002(14) defines the term “party-in-interest” as follows:   Any fiduciary (including, but not limited to, any administrator, officer, trustee, or custodian), counsel, or employee of such employee benefit plan; A person providing services to … Continued