ERISA Employee Benefit Plan Audits

Why Do You Need a 401(k) Audit?

According to federal law, a business that maintains an employee benefit plan consisting of 100 or more participating employees is required to have an annual audit by a qualified public accountant.

If you have never had a 401(k) audit plan done, then the initial process will likely overwhelm you. Our 401(k) audit professionals will help you to get through your audit in the quickest time possible.

Plans with fewer than 100 participants at the beginning of the plan year are considered ‘small’ plans and are eligible for the Small Pension Plan Audit Waiver. However, the Department of Labor (DOL) has identified the range of 80 – 120 participants (at the beginning of the plan year) as a grey area where the company has the option to continue as a ‘small’ plan or elect ‘large’ plan status. The choices for a plan falling into the 80 – 120 participant range are as follows:

Number of Participants at Beginning of Current Year Requirements Followed for the Previous Year Form 5500 Requirements to Be Followed for the Current Year Form 5500
80 – 99 (inclusive) Small plan Small plan
80 – 99 (inclusive) Large plan May elect to file Form 5500 again as a large plan or switch to a small plan
100 – 120 (inclusive) Small plan May elect to file Form 5500 again as a small plan or switch to a large plan
100 – 120 (inclusive) Large plan Large plan
More than 120 Large plan Large plan
More than 120 Small plan Large plan


If you are due for a 401(k) audit or if your organization is required for the first time to have a 401(k) audit, the team of Jaswant S Gill CPA, P.C. can assist you in making your audit process seamless. We invite you to call us today to discuss performing your next employee benefit plan audit. For a free 401(k) audit quote, click here.