401(k) Self-Audits: How to Avoid Costly Errors & Stay in Compliance

Duration: 60 minutes
In this session you will learn about: 
  • Common plan operation errors: How to prevent, spot and fix them
  • Preparing for the audit: Increase your filing accuracy & correct errors
  • Common IRS & DOL red flags: Avoid and handle a DOL or IRS audit


WHY ATTEND

IRS Form 5500 requires that all 401(k) plans with at least 100 eligible participants attach an annual audit performed by a qualified 3rd party CPA.

But there are two unintended consequences of this requirement:

  1. Many larger companies rely on the required audit alone to find errors or areas of noncompliance, rather than proactively finding issues, and that’s a dangerous game. 
  2. Smaller companies with no 3rd party audit requirement file Form 5500 without undergoing any plan audit, leaving no safety net between their plan and the IRS and DOL. Also dangerous. 

Even if your plan has fewer than 100 eligible participants, auditing is critical. Plan errors discovered by the IRS or DOL can invite extensive audits, leading to crippling fines and penalties. Gross or repeated noncompliance can lead to forced plan termination and disqualification penalties.

A proactive approach is essential. If you wait for 3rd party audits to identify problems, you’re out of the driver’s seat for corrections. If the auditor requires a course of action to remedy noncompliance, your hands are tied. Even if there’s an easier, less expensive, or faster fix, you’re at the mercy of the auditor. All because of errors you could have discovered internally.

This seminar will show you how to self-audit your 401(K) plan, identify issues, and evaluate possible remedies BEFORE a CPA audit – and well in advance of an audit by the IRS or DOL.

In addition to the process for self-auditing, this session will also offer expert guidance on complying with applicable DOL and IRS requirements, how to avoid common Form 5500 filing mistakes, and updates on the current DOL and IRS reporting and disclosure requirements.

      LEARNING OBJECTIVES

      In this session you will learn about: 

      • Common plan operation errors: How to prevent, spot and fix them
      • Preparing for the audit: Methods to increase your filing accuracy & correct errors
      • Common IRS & DOL red flags: How to avoid and handle a DOL or IRS audit of your plan
      • Avoiding costly mistakes to keep your company out of hot water
      • Annual audits: what to expect, how to prepare the documents and reports you’ll need
      • Best practices for plan fiduciaries - fiduciary charters, plan committees, operational and administrative compliance, identifying and correcting plan errors, and more

      ABOUT THE SPEAKER

      John A. Reade, Jr. is a partner in the Duane Morris Employee Benefits and Executive Compensation Practice Group and the Duane Morris Corporate Practice Group.

      His employee benefits practice encompasses the entire area of employee benefits, including executive compensation and severance agreements, qualified and nonqualified plans, health and welfare plans, ERISA litigation, employee benefits issues in corporate transactions, fiduciary related issues involving prohibited transactions and qualified plan advice and representation of clients before the DOL, IRS and PBGC.

      His corporate practice encompasses general corporate law with an emphasis on commercial finance.

      Mr. Reade is a 1994 magna cum laude graduate of Syracuse University College of Law, where he was a member of the Syracuse University Law Review, and a magna cum laude graduate of Syracuse University.

      Certification

      This program has been approved for 1.0 recertification credit hour(s) through the HR Certification Institute (HRCI) & Society for Human Resource Management (SHRM).

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      Live + Recording

      Participation in the live webinar + Full MP4 Recording. For recording, choose digital download or CD-ROM by mail.

      Event Package

      Event Value Pack

      Participation in the live webinar + Full MP4 Recording + Audio-only MP3 recording. For recordings, choose digital download or CD-ROM by mail.

      What You Get With Each Option close

      Live Recording

      Live Only

      Participation in the live upcoming webinar

      Recording

      Recording Only

      Full MP4 recording of webinar, including Q&A. Choose digital download or CD-ROM by mail.

      Live and Recording

      Live + Recording

      Participation in the live webinar + Full MP4 Recording. For recording, choose digital download or CD-ROM by mail.

      Event Package

      Event Value Pack

      Participation in the live webinar + Full MP4 Recording + Audio-only MP3 recording. For recordings, choose digital download or CD-ROM by mail.

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