Ensure Compliance. Protect Your Plan. Gain Peace of Mind.
If your business offers a 401(k) or another employee benefit plan, you may be required by law to undergo an employee benefit plan audit. These audits are more than just a formality—they help protect your employees, keep your plan in compliance, and reduce your exposure to IRS and Department of Labor (DOL) penalties.
At Smaart, we specialize in providing efficient, accurate employee benefit plan audits that meet federal requirements and give you clear, actionable insights into how your plan is being managed.
An employee benefit plan audit is an independent examination of a retirement plan’s financial statements, operations, and internal controls. It’s typically required by the Employee Retirement Income Security Act (ERISA)for businesses with 100 or more eligible participantsin their retirement plan at the beginning of the plan year.
The goal is to ensure your benefit plan:
These audits are submitted with your Form 5500and must be performed by a qualified independent CPA.
You likely need an audit if:
Even if you’re not yet required to undergo an audit, a voluntary review can help you catch problems early and ensure your fiduciary responsibilities are being met.
Smaart offers comprehensive audit services designed to take the burden off your HR and finance teams while ensuring full compliance.
We review plan assets, liabilities, contributions, distributions, and participant data to ensure accurate reporting and financial integrity.
We assess your plan’s internal controls—such as contribution processing, recordkeeping, and participant communications—to identify and fix weaknesses.
We check for compliance with IRS and DOL rules, including participant eligibility, contribution limits, non-discrimination testing, and timely remittances.
We compare actual plan operations with the plan document to confirm the plan is being administered as written.
If we find any issues (like late deposits, incorrect matches, or missing disclosures), we’ll guide you through the proper correction procedures.
We provide the required audit report for your Form 5500 and coordinate with your third-party administrator (TPA) to ensure timely filing.
At Smaart, we understand that audits can feel overwhelming—especially if you’re managing them on top of running a business. That’s why we make the process efficient, informative, and as stress-free as possible.
We don’t just check boxes. We help you strengthen your plan administration and avoid future issues.
If your plan has 100 or more eligible participants at the beginning of the plan year, you’re generally required to have an audit as part of your Form 5500 filing. There are exceptions for plans that meet the “80-120 participant” rule in certain cases.
If your plan had between 80 and 120 eligible participants at the start of the year, and you filed Form 5500 as a “small plan” in the previous year, you may continue to file as a small plan and skip the audit—for now. We can help assess your eligibility.
The DOL may reject your Form 5500, assess penalties, and increase your audit risk. It’s essential to comply once the requirement applies.
Most audits take between 3 to 6 weeks, depending on plan complexity and how quickly documents are provided. We work closely with your TPA and payroll provider to keep things moving smoothly.
Yes! We collaborate directly with your TPA and investment custodian to gather data, reduce back-and-forth, and ensure a complete, accurate audit.
If past contributions were miscalculated or filings missed something, we help you correct issues through proper channels, including IRS or DOL voluntary correction programs.
Our pricing is based on plan size and complexity, but we offer clear, fixed-fee options with no hidden costs. We also offer bundled services if you need broader financial support.
