Know About 401k Audits and Plans
The word “audit” whenever cited; raises questions and discomfort among people. The reason being; lesser knowledge of the audits which they are obliged to pay and which one doesn’t concern them. 401(k) Plan Audit is no less an exception which is complex for the people who are not familiar with it. Are you required to pay 401(k) Audit? Lot of non-public businesses are not indebted to audit their book annually. While figuring out if you are bound to pay an audit for your 401(k) plan; primary requirement is to determine the number of eligible participants in the plan at the outset of the plan year. Such plans are termed “Large Plan.”ERISA (Employee Retirement Income Security Act) of 1974 obligates a firm to have their financial statement’s annual audit attached to their Form 5500 through an independent qualified CPA to DOL.