The DOL Department of Labor has made some noteworthy changes to the financial statement audit requirement for retirement plans. The rules that began in calendar year 2023 become effective with your July 2024 reporting. Here was the main difference starting last year: The participant count will be based upon the number of participants who have account... The post New 401k Plan Audit Rules for 2024 appeared first on LSL CPAs ..read more

The DOL has made some changes to the financial statement audit requirement for retirement plans. Beginning for the calendar year 2023, your reporting requirements for your 401(k) plan participant count will be based upon the number of participants who have account balances in the 401(k) plan and NOT just on “eligible” employees. Why the Changes... The post New 401k Plan Audit Rules for 2023 appeared first on LSL CPAs ..read more

The DOL has made some changes to the financial statement audit requirement when retirement plans have over 100 eligible participants.  Beginning for the calendar year 2023, your reporting requirements for your 401(k) plan participant count will be based upon the number of participants who have account balances in the 401(k) plan and NOT just on... The post New 401k Plan Rules for 2023 appeared first on LSL CPAs ..read more

Don’t wait until the last minute! Accountants really do like to make people’s lives easier. The best way to do that is to prepare our clients so they know what’s coming. In this instance, we are talking about the five things people need to have in order to transition smoothly from not needing an audited... The post You’re Now Eligible for a 401(k) Audit: Five Documents You Need appeared first on LSL CPAs ..read more

What is the purpose of a 401(k) plan? A 401(k) plan is designed to guard and protect your employees’ retirement benefits. You, as the employer/sponsor must make sure funds are available to pay the retirement and other promised benefit obligations to your employees. Choosing the right CPA to audit and monitor the plan is a... The post How to Select the Right 401(k) Plan Auditor for Your Company … and why you need one appeared first on LSL CPAs ..read more

The only thing constant is change. And now, the ERISA (Employee Retirement Income Security Act of 1974) Section 103(a)(3)(C) audit replaces the old 401(k) Plan Limited Scope audit. Details follow. What is ERISA 103(a)(3)(C)? This is the new audit standard for employee benefit plans subject to ERISA’s provisions. The ERISA 103(a)(3)(C) makes changes to both... The post ERISA Section 103(a)(3)(C) Replaces the 401(k) Plan Limited Scope Audit – Your Questions Answered appeared first on LSL CPAs ..read more

We hope you’re aware that the “full-scope audit” for the 401(k) plan requirement for more than 100 employee participants is now called an ERISA 103(a)(3)(C) audit. Does the 80/120 Rule still apply? YES. As we know, the 80/120 rule states that your participant count can climb up to 120 before an audit is required. This... The post 80/120 Rule: Which 401(k) Plans Are Required to Have an Audit? appeared first on LSL CPAs ..read more

About this time every year, the IRS publishes the Retirement Plan Contribution Limits for 2022 for the following year. Keeping Up On November 4, 2021, the IRS announced that the sum individuals can contribute to their 401(k) plans in 2022 will increase to $20,500, up from the $19,500 maximum allowable in 2021 and 2020. For... The post Retirement Plan Contribution Limits for 2022: 401(k) Limit Increases to $20,500 appeared first on LSL CPAs ..read more

Large and Small Plans and a Handy Checklist! Administering a retirement plan carries a fiduciary responsibility for the employer. For those stakeholders (it’s your retirement, too), monitoring the plans quarterly is just good business. Two main benefits of quarterly 401(k) monitoring FIRST BENEFIT The participants gain from having the sponsor monitor their plan benefits on... The post Benefits of Monitoring 401(k) Plan Each Quarter appeared first on LSL CPAs ..read more

Lots to Know. Lots to Do. You have until July 31, 2022, to restate pre-approved defined contribution plans such as 401(k)s, profit-sharing, and money purchase pension plans. In case you are wondering,  403(b) plans and defined benefit plans each have their own six-year reinstatement cycles. The defined contribution plan carries the “Cycle 3” designation because... The post The IRS Has Announced the Deadline for Reinstatement of Defined Contribution Plans appeared first on LSL CPAs ..read more