Year-End Audit: Comply with Confidence

Want to have a less stressful and successful Employee Benefit Plan Year-End Audit?

Here are six steps that can help.

  1. Be prepared and compliant ahead of time – it’s better than a last-minute shuffle. One tip: If you’ve had problems getting ready for audits in the past, be sure to upgrade the systems that record and organize plan information in advance of the audit. Trying to address problems while the audit is underway will just compound them.
  2. Maintain clear communication with the auditor. Some problems actually start and end with poor communication and can be avoided through prompt replies and clear responses.
  3. Understand your role versus the role of your Third-Party Administrator (TPA). Arrange a meeting with your representative or consultant from your TPA to discuss what must be done by parties within and outside your organization.
  4. Know your plan’s size – and likely size at year-end. If you are a “large plan” (100+ employees), you have different reporting requirements and compliance standards than a “small plan.” If you are approaching the 100-employee threshold, you will need to be prepared if you reach large-plan size by the end of the year.
  5. Maintain careful records. This includes keeping copies of all-important documentation of changes to employee’s plans and other key documents. Also, you should assign the responsibility of coordinating all documents to a single point person.
  6. Create and meet internal deadlines. You need to identify each piece of audit documentation you need and its timeline for completion. Don’t let documentation-gathering create roadblocks that will slow down the entire process.

Need more help? Let The Retirement Advantage be your partner in the coming Year-End Audit so that you can comply with confidence. Click here to view the Year-End Checklist.

Contact us today to speak with a consultant or begin a proposal.


Consider TRA's 3(16) Fiduciary Services & Plan Administration

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