Errors. They are everywhere if you look closely enough. But there are common themes in most plan errors that auditors of large plans come across every year. This article addresses the most common errors, why they occur, and how they can be avoided. We have just finished another exciting season of auditing employee benefit plans[ … ]
Employee Benefit Plan Audit Quality – Journal of Pension Benefits
CariAnn J. Todd, CPA, is the Director of the Employee Benefit Plan Audit Group for BeachFleischman PC. She recently authored an article for the Journal of Pension Benefits that discusses how CPAs are addressing audit quality as well as some of the challenges in the process. Article Preview As a CPA, I am fortunate to[ … ]
Participant Loan Defaults and Deemed Distributions
Many defined contribution plans include provisions for a participant to take a loan from their account balance. The loan is generally limited to $50,000 or 50% of the participant’s vested account balance, whichever is less and may also be subject to a minimum. Loans are typically repaid through payroll deduction over a period of 5[ … ]
Audit Quality – It’s Our Priority
The Department of Labor recently issued a report on its study of the quality of employee benefit plan audits. The study focused on 400 plan audits attached to 2011 Form 5500 filings. The results were less than impressive. The study found the following: 39% of audits contained major deficiencies in terms of compliance with U.S.[ … ]
Finally, Some Good News for Plan Sponsors!
Typically this time of year no one is praising the IRS. Many of us are still searching for those last few donation receipts or the 1099 we put somewhere we wouldn’t forget it, or scrambling to find the funds to pay a balance due. But April 2015 will be remembered by employers who sponsor retirement[ … ]
Saving Money on Plan Administration Costs
While the economy may be improving, everyone we know is still attempting to cut costs where they can. As you do this within your own company, we would like to share with you an idea for reducing the amount of fees paid for plan administration…allocate an annual administration fee to terminated participants. As retirement plans[ … ]
Internal Controls for Employee Benefit Plans
When an employee benefit plan is implemented, it is important for the plan sponsor (or employer) to communicate the roles and responsibilities of the affected departments, typically human resources, payroll and accounting. The human resource department communicates information about the benefit plan to employees as part of the orientation process, as well as monitors eligibility[ … ]
10 Common Mistakes that Occur in Retirement Plans
There are a lot of combos that bring a smile to your face when you hear them: Peanut butter & Chocolate Laverne & Shirley (or for the younger set… Beavis & Butt-Head) Joe Montana & Jerry Rice Bacon & … anything Audit & Department of Labor I doubt that last one is on your list. [ … ]
Amendment & Restatement: Is your plan included?
Most retirement plans have adopted a pre-approved plan published by a third party. If your plan is included, you may see the term “prototype” or “volume submitter” in the plan document or on its cover page. You can also refer to the “Federal income tax status” footnote of your plan’s audited financial statements to see[ … ]
