Between tax reform, healthcare regulations, and who knows what else, business owners have a lot to focus on right now. So when it comes to keeping tabs on your company’s retirement plan statistics, you might feel like your attention would be better spent elsewhere – but be careful! Before you know it, the number of participants on your company’s retirement plan could cause you to trigger a plan audit, which can have a number of (potentially expensive) ramifications.
Joining us on this episode of unsuitable on Rea Radio is Kim Veal, a member of Rea’s Retirement Plan audit team, who will teach us how to identify retirement plan participants, what the retirement plan audit “magic number” is, and what to do once you hit that magic number. If you have more than 100 retirement plan participants, your organization will most likely require a plan audit. In the context of retirement plans, “participants” is a very general term. It includes anybody who is eligible for the plan, not just those actively participating. In the future, this rule is likely to change so that it is only those employees who are actively participating, but at the same time more people are likely to start participating if the stock market continues to improve – so you’ll need continue paying attention to this number over the coming months and years.
If you have employees, you will be interested in these topics discussed in this episode:
- Penalties for ERISA compliance violations.
- What exactly the “magic number” for a retirement plan audit is and what this means to you.
- How to select the best auditor for the job.
If you liked this episode of unsuitable on Rea Radio, let us know by hitting the like button or by sharing it with your followers on social media. You can also use #ReaRadio to join the conversation on Facebook and Twitter, and you can watch the podcast in action on the Rea & Associates YouTube channel. We’ve also included access to additional resources on our website at www.reacpa.com.
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Do Retirement Plan Sponsors Find Your Advisory Services Valuable? – Retirement plan sponsors are chosen based on a number of reasons. Don’t let your plan sponsors down by not taking your duty seriously.
How Safe Is Your Plan Participants’ Data? – It is time to understand your responsibility to protect your participants’ data from cyber criminals.
Bad Benefit Plan Audits Hurt Good Businesses – What can you do to protect your company from noncompliance issues that may result from choosing the wrong team to conduct your employee benefit plan audit?
Keeping In Touch – Audit standards require that certain communications occur between the auditor and plan management. We’ll explain the four types of required communications that the auditor may provide.
Click here to read the official transcript for episode 120, “Is Your Retirement Plan in Compliance?”