{"id":111090,"date":"2023-10-28T12:03:32","date_gmt":"2023-10-28T12:03:32","guid":{"rendered":"https:\/\/namso-gen.co\/blog\/when-is-a-401k-audit-required\/"},"modified":"2023-10-28T12:03:32","modified_gmt":"2023-10-28T12:03:32","slug":"when-is-a-401k-audit-required","status":"publish","type":"post","link":"https:\/\/namso-gen.co\/blog\/when-is-a-401k-audit-required\/","title":{"rendered":"When is a 401k audit required?"},"content":{"rendered":"

When is a 401k audit required?<\/p>\n

A 401k audit is a significant process that ensures compliance with the regulations governing employee benefit plans. It is mandated by the Employee Retirement Income Security Act (ERISA) and the Internal Revenue Code (IRC). But when exactly is a 401k audit required? Let’s delve into this topic to gain a comprehensive understanding.<\/p>\n

A 401k audit is necessary for companies that have a 401k plan with 100 or more eligible participants. Eligible participants include current employees who are eligible to contribute to the plan, as well as former employees who have retained assets in the plan. Once a company reaches the 100 participant threshold at the beginning of the plan year, they have until the end of the following plan year to complete their first audit. For example, if a company reaches 100 participants on December 1st, 2021, then their first audit will cover the plan year that ends on December 31st, 2022.<\/p>\n

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