Art of the Qualified Plan Audit

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

In Summary New Audit Standard Introduced: SAS 136, effective for plan years ending on or after December 15, 2021, replaces the limited-scope audit with the ERISA Section 103(a)(3)(C) audit. This change mandates the auditor to provide an opinion on all financial information except for the carved-out certified investment data, which differs significantly from the former … Continued

In Summary High Cost of Exclusion Correction: Correcting the improper exclusion of eligible employees from making salary deferrals under the IRS’s EPCRS involves substantial employer contributions. This includes a Qualified Nonelective Contribution (QNEC) and 100% of the missed matching contribution, potentially leading to a perceived windfall for the affected participants who received their full paychecks … Continued

Posted By: Maria Hurd, CPA There is Always Room for Improvement: Proposed Revisions to Form 5500 On September 14, 2021, the U.S. Department of Labor (DOL), the Internal Revenue Service (IRS), and the Pension Benefit Guaranty Corporation (PBGC) (together “Agencies”) jointly announced a tri-agency notice of proposed forms revisions to the Form 5500 Annual Return/Report … Continued

Posted By: Saaib T. Uppal, CPA, QKA IRS Announces Increases on Benefits and Contributions Dollar Limitations for 2022 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 2022   Plan Limits   RETIREMENT & SOCIAL SECURITY 2022 Limit … Continued

In Summary Requirement for the Independent Audit: The Employee Retirement Income Security Act (ERISA) mandates that large retirement plans, generally those with 100 or more participants at the beginning of the plan year, must have their financial statements audited. These audited statements are required to be attached to the Schedule H of the annual Form … Continued

Is your auditor a Jack of all trades, but a master of none?

When I was a Teaching Assistant in College, group projects would inevitably result in complaints that some students were not pulling their weight.

Posted By: Maria T Hurd, CPA, RPA Improved EPCRS : More Self-Correction Options Inside the Box Perfection is aspirational, especially when it comes to retirement plan administration. That is why 30 years ago, in 1991, the IRS created the EPCRS (Employee Plan Compliance Resolution System), a mechanism for plan sponsors to fix mistakes. Compliance with … Continued

Posted By: Maria Hurd, CPA, RPA What Do You Check to Indicate Your Client’s Auditor Performed a Limited Scope Audit On Your Mark, Get Set, GO!, Or Don’t Go….It’s Up to You! The AICPA postponed the mandatory effective date of the new audit standard, SAS 136, until next year, but the DOL had already updated … Continued