When Should Your Business Think About a 401(k) Audit?

As a business owner, providing employee benefits such as a 401(k) plan can be a great way to attract and retain talented employees. However, as the plan grows in size and complexity, it becomes subject to federal regulations that require annual audits to ensure compliance. In this blog, we’ll discuss when your business should think about a 401(k) audit, specifically in the Houston area. Firstly, it’s important to understand the basics of a 401(k) audit. The Employee Retirement Income Security Act (ERISA) requires that businesses with 100 or more eligible participants in their retirement plan conduct an annual audit. This audit must be performed by an independent auditor to ensure that the plan is being administered in compliance with ERISA regulations. However, even if your plan has fewer than 100 participants, you may still need an audit if your plan holds significant assets or if your business is publicly traded. So when should your business think ab...