Houston 401k Audits

401(k) plans have become one of the most common retirement plan options offered by Houston employers. It’s so popular that most have come to expect it, or a similar employee benefit plan, to be offered as part of the compensation package. There are a variety of plan options for employers to select from and finding one with the right benefits (and cost structure) is essential. Many face a challenge when the plan grows and meets the minimum requirement to undergo a Department of Labor (DOL) ERISA Audit. Others that have been through a plan audit may have service issues with their provider. Whatever the case, it’s important to work with an auditor with experience and a dedicated commitment to the plan audit specialty.

ERISA Experience

Calvetti Ferguson provides plan audits to 80 benefit plans, including 401(k), defined benefit plans, 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 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.

Houston (TX) Overview

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

  • Top Industries by Occupation – The area’s top employers include companies in office administration and support (10.9%), sales and related occupations (9.95%), management occupations (9.45%), construction (9.1%), food service (6.28%) and business/financial operations (5.6%).
  • Highest Paying – The highest paying industries include mining and oil/gas extraction ($100,000), agricultural and forestry ($92,000), management of companies ($83,000) and utilities ($70,000).
  • Domestic Production & Consumption – The top three production and consumption areas include fuel oils ($282B), gasoline ($216B) and mixed freight ($159B).

Source: Data USA – Houston (TX)

Contact Our Houston 401k Audit Team

Calvetti Ferguson provides 401k plan and other benefit plan audits in Houston, The Woodlands and across Texas. Complete the form below and one of our employee benefit plan auditors will promptly reply.