Statement on Auditing Standards (SAS) 136 was issued by the AICPA’s Auditing Standards Board to address changes to audits of employee benefit plans subject to the Employee Retirement Income Security Act of 1974 (ERISA). The purpose of this new standard is to improve auditor performance, enhance the quality of employee benefit...
As part of the Coronavirus Aid, Relief, and Economic Security Act (CARES Act), there are several provisions that impact both 401(k) and 403(b) employee benefit plans. These changes are designed to provide much-needed relief with respect to the COVID-19 crisis. Here are the key provisions that employers and plan administrators should...
Plan sponsors (employers) typically adopt a “proto-type” plan that has been pre-approved under the Internal Revenue Code (IRC). The proto-type plan enables the sponsor to configure the plan based on the preferences of the organization. Some of the key features determined by plan sponsors are: (1) When are employees eligible to...
The Department of Labor (DOL) is continuing to focus its efforts on improving the audit quality of employee benefit plans. During 2015, the DOL released a report called “Assessing the Quality of Employee Benefit Plan Audits” in which the agency reviewed 400 plan audits. As a result of this review,...
In today’s for-profit school environment, two concerns often expressed relate to cash flow and to net profit for owners. Since an optimal retirement plan design can help both increase cash flow through increased tax deductions and put more money into owners’ (and employees’) pockets for retirement, businesses and owners should...
By Robert J. Behr, CPA The answer to this question depends on if your 401(k) plan is deemed to be “small” or “large”. This is based on the number of “eligible” participants in your plan at the beginning of the plan year. Technically, the Department of Labor (“DOL”) requires an independent...