Art of the Qualified Plan Audit

Posted by Christopher J. Ciminera, CPA, QKA A major change that comes with the passage of the SECURE (Setting Every Community Up for Retirement Enhancement) Act is a substantial increase in the penalty amounts imposed by the Internal Revenue Service (IRS) for a retirement plan’s failure to file a return. The increased penalty is part … Continued

In Summary New Flexibilities Introduced for Plan Sponsors: The law permits businesses to adopt qualified plans until the tax return due date (including extensions) for employer contributions, applying to tax years after 2019. It also provides a remedial amendment period through the 2022 plan year for making retroactive changes to reflect new operational rules. The … Continued

In Summary Revenue Provisions Affecting Required Distributions and Penalties: The law extends the payout period for most non-spousal inherited retirement accounts (DC plans and IRAs) from five years to ten years, eliminating the lifetime distribution option for most non-spousal beneficiaries. Additionally, penalties for failure to file Form 5500, Form 8955-SSA, and other required statements or … Continued

Posted by Tyler Starr, CPA The most common error found during the audit of an employee benefit plan is the incorrect definition of compensation being used for contribution purposes. Whether the error is related to payroll coding issues or not fully understanding the plan provisions, plan compensation can be one of the biggest traps for … Continued

Posted by Saaib T. Uppal, CPA, QKA 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 2020: PLAN LIMITS RETIREMENT & SOCIAL SECURITY 2020 Limit 2019 Limit 2018 Limit Section 401(k), 403(b), 457(b) elective deferrals  $19,500  $19,000  $18,500 401(k) … 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 … 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 … 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 … 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 … 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 … Continued