401(k) plan audits can be a complex and time-consuming process for employers. Ensuring compliance with ERISA, IRS, and DOL regulations is crucial to avoid penalties and maintain a healthy retirement plan.
At Wittrock Financial Group, we specialize in 401(k) audit support and plan compliance review to help businesses manage their fiduciary responsibilities effectively. A 3(16) fiduciary plays a key role in simplifying 401(k) plan audits and ensuring seamless compliance. Here’s how.
1. Taking Over Fiduciary Responsibilities to Reduce Employer Liability
A 3(16) fiduciary assumes key responsibilities, ensuring that:
- Form 5500 filings and regulatory submissions are completed accurately.
- Plan transactions, including participant loans and distributions, comply with federal guidelines.
- Employers are shielded from liability by offloading critical fiduciary tasks.
By delegating these responsibilities, employers can focus on business operations rather than compliance risks.
2. Keeping 401(k) Plan Documents Audit-Ready
Maintaining proper records is essential for a smooth audit. A 3(16) fiduciary ensures all necessary documents, including:
- Plan Adoption Agreements
- Summary Plan Descriptions (SPDs)
- Annual Compliance Reports
are up to date and audit-ready, reducing errors and making the audit process efficient.
3. Conducting Pre-Audit Compliance Reviews
A plan compliance review helps identify potential red flags before an audit begins. Wittrock Financial Group provides services to:
- Verify contribution calculations and participant eligibility.
- Detect late deposits and other compliance issues.
- Implement corrections proactively, ensuring audit readiness.
This proactive approach minimizes financial risks and ensures full compliance.
4. Acting as the Direct Liaison with Auditors
During an audit, timely and accurate responses to auditor inquiries are crucial. A 3(16) fiduciary:
- Serves as the primary point of contact for auditors.
- Provides well-organized documentation and compliance reports.
- Ensures the employer’s role in the audit process is minimal.
This hands-off approach allows employers to focus on their business instead of audit complexities.
5. Ensuring Long-Term 401(k) Plan Compliance
A 3(16) fiduciary doesn’t just help with audits—they provide continuous 401(k) plan monitoring, ensuring:
- Regular updates on IRS and DOL regulations.
- Ongoing compliance tracking to prevent audit triggers.
- Strategic recommendations for improving plan compliance and efficiency.
This long-term oversight helps employers maintain a compliant and optimized retirement plan.
Conclusion: Partner with Wittrock Financial Group for 401(k) Audit Support
Avoiding audit pitfalls and maintaining compliance is essential for a successful 401(k) plan. At Wittrock Financial Group, we offer expert 401(k) audit support and plan compliance review services to help businesses mitigate risks and streamline the audit process.
Need Expert 401(k) Compliance Assistance?
Contact us at service@lifeaudit101401k.com or call 800-725-8780. Visit us at 1719 Hill Avenue, Spirit Lake, Iowa 51360 for a consultation with Chip Wittrock, Financial Advisor, and Renne Wittrock, Business Development Manager.
