Host: Buck Blanton. Audio library: www.ExitCoachRadio.com.
John Howard discusses retirement plans, choosing audits, and how you can determine which process is right for your business. New content daily - tune in on iTunes!
Transcript:
John: Typically, in these retirement plans, when you exceed 120 participants, then that first year when you receive 120, you are subject to an audit. You are considered a large plan at that point under the Department of Labor and the IRS...
Host: Buck Blanton. Audio library: www.ExitCoachRadio.com.
John Howard discusses retirement plans, choosing audits, and how you can determine which process is right for your business. New content daily - tune in on iTunes!
Transcript:
John: Typically, in these retirement plans, when you exceed 120 participants, then that first year when you receive 120, you are subject to an audit. You are considered a large plan at that point under the Department of Labor and the IRS standards, and you need to submit an audit. Now, the problem is the next step: Once you determine you need audit, is what type of audit, because there are different audits with retirement plans. There's what we call a limited scope audit, which and auditor does not need to do as much work as with a full scope audit, and the difference with those would be, if the plan assets are held by a financial institution such as a bank or an insurance company, they can certify that the plan assets are what they are, the transactions have been posted properly to the participant's accounts, the allocation of earnings to the participant's accounts is accurate, then we can accept that under the Department of Labor standards.
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