Does my plan require an audit with the Form 5500 filing?

Some large plans are required to undergo an annual examination and evaluation of the plan’s financial statements by an independent qualified public accountant. The accountant’s audit report must be submitted with your Form 5500. Most plans with 100 or fewer eligible employees can waive audit requirements

Beginning 2021, Guideline gives your plan the option to allow for the distribution of dismissed participant accounts which do not exceed $5,000. Doing so will reduce your plan’s participant count, and may allow you to avoid the audit requirement for large plans.  While we cannot guarantee that this will eliminate the audit requirement, it should greatly reduce the chances that an audit will be needed.

Guideline’s Audit Partner

If your plan requires an audit, you may select your own auditor or use Guideline’s preferred audit partner, Pension Assurance LLP. Pension Assurance is a specialized, single-service CPA firm dedicated firm-wide and year-round to ERISA retirement plan audits. Pension Assurance performs over 300 plan audits a year. It takes about 6 weeks from the date of receipt of the audit package for Pension Assurance to complete the audit. Test work, which takes about half a day, can be done remotely or on-site. Pension Assurance invoices you for the cost of the audit; costs can vary depending on the number of participants in your plan as well as whether or not your plan is a conversion or new plan.

Though Guideline has partnered with Pension Assurance to provide a streamlined audit package to help reduce the overall audit cost to our shared clients, you are encouraged to obtain other quotes and perform your due diligence in selecting a qualified service provider who charges reasonable fees.

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