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Dallas 401k Audits

Planning for retirement is a concern for both employees and employers alike. To help employees save for retirement, many Dallas companies offer a retirement plan such as a 401(k). These tax-deferred plans provide a good savings option to fuel an individual’s retirement. The saving opportunity with 401(k) plans was recently enhanced when the President signed the Setting Every Community Up for Retirement Enhancement (SECURE) Act of 2019. The new law expands plan participation opportunity to qualifying part-time employees and provides small businesses with an additional tax credit for implementing a 401(k) plan with automatic enrollment. These changes only make 401(k)s more attractive.

While engagement is the purpose of the plan, it’s important to be aware of the compliance requirements once the plan reaches a certain size. The most important change is the requirement to undergo a Department of Labor (DOL) ERISA Audit. The annual audit represents a comprehensive analysis of plan policies, procedures and a review of the financial condition of the plan. Since 401k plan audits are nuanced and have special requirements, it’s important to work with an experienced Dallas 401(k) auditor with a dedicated commitment to the plan audit specialty.

ERISA Experience

Calvetti Ferguson provides plan audits to 80 benefit plans, including 401(k), defined benefit, ESOP’s including limited and full scope audits. We work with plans that are single or multiple employers and have experience serving plans with an 11K filing requirement. The firm provides services to benefit plans with asset sizes ranging from $1M to $1B and a total participant count between 100 and 30,000.

Our firm is also a member of the AICPA Employee Benefit Plan Audit Quality Control Center. Maintaining membership is voluntary and permits our team members to receive advanced training on regulatory changes. Involvement serves as a reflection of our commitment to delivering quality plan audits.

401(k) Plan Features

Analytics on plan features most commonly offered by employers, including:

  • Employer MatchingAccording to a BLS Survey, in plans with an employer matching feature, 42% of respondents indicated an employer match of less than six percent while 48% have an employer match of 6% of earnings. The most common rate of the match was $.50 for each participant dollar contributed.
  • Investment Optionsthe same survey also discovered that 86% of employees participating in 401(k) plans were given a choice in investment options. The number of options varied from 2 to 10 choices and contribution splitting is allowed.
  • Loans & WithdrawalsAnother interesting finding was the number of plan participants that were eligible for a plan loan. According to the survey, 51% of participants were eligible for a plan loan. It was also discovered that 33% were able to take, penalty-free, hardship withdrawals for qualifying life events.
  • Distribution OptionsIt was also uncovered that 91% of 401(k) plans permit a lump sum payment of benefits upon retirement. Many are allowed to choose the payout methods including a lifetime annuity or payments over an agreed-upon period.

Source: Bureau of Labor & Statistics – Employee Costs and Risks in 401(k) plans

ERISA Audit Services

Our 401(k) plan audit services include;

  • Comprehensive audit services, including testing participant account balances to verify
    their accuracy and completeness.
  • Form 5500 preparation and review.
  • Preparation and submission of required 11k filings.
  • Plan design options information and recommendations.

Dallas (TX) Overview

Below is a list of essential facts about Dallas (TX) including;

  • Top Industries by Occupation – the area’s top employers include companies in office administration and support (12.4%), construction and extraction occupations (10.4%) and management occupations (9.3%).
  • Highest Paying – the highest paying industries include professional, scientific and technical services, management of companies and enterprises, and finance and insurance.
  • Interstate Trade – the top states that Dallas companies engage in trade with include Louisiana, Oklahoma and California.

Source: Data USA – Dallas (TX)

Contact Our Dallas 401k Audit Team

Calvetti Ferguson works with middle-market companies, private equity firms, and high-net-worth individuals nationwide. Regardless of the complexity of the compliance, assurance, advisory, or accounting need, our team is ready to help you. Please complete the form below, and we will follow up with you shortly.