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How to survive a 401(k) plan audit

How to survive a 401(k) plan audit


In the most recent issue of Washington CPA magazine, our CEO Tim Wulfekuhle has authored an article describing how to  survive an audit of your 401(k) plan.  Side benefit?  You should be doing these things anyway.  (It is well known that the DOL has stepped-up qualified plan audit activity.  65% of plans audited have some sort of defect, and the average recovery (restoration + penalties) is $235,000.)

Highlights below – for more – see the full article here “Best Practices for 401(k) Administration That Will Also Help You Get through a DOL Audit of Your 401(k) Plan”

  1. Don’t give them a reason
  2. Remit contributions on time
  3. Locate and understand all vendor fee disclosures
  4. Know how fees are being charged to participants
  5. Document your investment selection and monitoring process
  6. Follow the plan provisions
  7. Retain documentation and plan records


We have also posted an example DOL audit request list here.