If your plan receives audited financial statements, they may be accompanied by a management letter. This can be a valuable resource when it comes to making your plan more efficient and identifying potential risk associated with plan qualification and ERISA compliance.
There are common management issues in employee benefit plans. Having the appropriate Complementary User Entity Control in place will assure to plan management that policies and procedures are being followed.
In most cases, participants’ immediate and heavy financial need must be established based on “all relevant facts and circumstances” before they are eligible to request a hardship distribution. Yet, the IRS has established safe harbor rules that automatically consider an employee to have such a need if the distribution is used to cover a few specific expenses.
Hiring a qualified CPA firm to conduct your employee benefit plan audit is critical to avoiding fines and penalties from the Department of Labor. We outline the eight things you should discuss with a prospective auditor before entering into an engagement.
There are plenty of ways to get in trouble in the highly regulated world of employee benefit plans. But there are few ways to get in hot water faster than by engaging in prohibited transactions.
As an employee benefit plan administrator, you have a clear fiduciary responsibility to ensure the quality of your plan’s audited financial statements. Hiring an experienced, high-quality auditor is a critical first step. An audit performed by an unqualified firm can result in operational failures being missed and a deficient audit being submitted. Such an audit […]