Managing the complexities of a large plan audit can be a significant source of stress. The key to a more streamlined audit process is to partner with a service provider who delivers outstanding service and expertise. At Leading Retirement Solutions (LRS), we ensure that your audit experience is smooth and hassle-free.
What is the Large Plan Audit?
A Large Plan Audit (LPA) involves a set of audited financial statements for your retirement plan, complete with an independent auditor's opinion, footnote disclosures, and supplemental schedules required under the Employee Retirement Income Security Act (ERISA). The primary purpose of the audit is to review the financial health and compliance of the plan, rather than evaluating the service providers or the plan as a whole.
If a plan is required to have a Large Plan Audit and does not include the audit attachment with the annual required IRS Form 5500, the IRS and Department of Labor (DOL) view the plan as not having submitted their required annual Form 5500. This can lead to significant penalties.
What Are the Penalties for Not Completing a Large Plan Audit?
IRS penalties for not completing a large plan audit are the same as not filing Form 5500; $25/day, with a maximum fine of $15,000. For returns required to be filed after December 31, 2019, the penalty for failure to file is increased to $250 a day (up to (150,000). See IRC Section 6652(e). The Department Of Labor penalty for late filing can run up to $2,529 per day, with no maximum.
If you are concerned about inaccuracies in completing a comprehensive audit of your retirement plan, do not worry. Our compliance and correction services are available to assist you in rectifying any costly errors.
When Must a Retirement Plan Engage in a Large Plan Audit?
Any new retirement plan beginning in 2023 with 100+ accountholders (active and/or terminated employees with a balance in their retirement account) must include an independent audit report from an audit firm, with the Form 5500.
Given the constant evolution of regulations, numerous businesses find themselves uncertain about the necessity of conducting a large plan audit. Contact our team for personalized guidance on determining if your organization is or will be subject to the large plan audit requirement.
How LRS Ensures Expertise, Personalization, and Efficiency
At LRS, we understand the intricacies involved and demand for coordination with multiple parties in accomplishing large plan audits. Here’s how we make the process seamless for you:
- Expertise and Experience: Our knowledgeable team has years of experience handling large plan audits.
- Personalized Service: We tailor our approach to meet your specific needs and preferences, ensuring a customized experience.
- Innovative Solutions: We continuously improve our processes to provide efficient and effective service by utilizing the latest technology and best practices.
- Transparent Communication: We keep all parties informed throughout the audit process, ensuring you always know the status and next steps.
- Direct Collaboration: We work closely with the audit firm to ensure all necessary reports and data are prepared in advance, streamlining the entire process.
At LRS, we work hand-in-hand with audit partners to ensure a smooth process for your business. Our streamlined approach leads to a more organized and efficient experience, offering a trouble-free audit for everyone involved.
One of our partners, a national tax, accounting, and advisory firm, remarked, "Leading Retirement Solutions (LRS) exemplifies professionalism and expertise in retirement planning. Their dedication to tailoring retirement plans to meet the specific needs of businesses sets them apart in the industry. With their prompt and informative communication to their deep expertise in the field, they consistently exceed expectations. Highly recommend trusting them with your retirement plan administration and consulting needs."
Another global full-service accounting firm serving business owners stated, "We have had the pleasure of working with the LRS team for a number of years. We appreciate all their great follow-through and strong project management skills which help in getting clients Retirement Plan Audits wrapped quickly and efficiently."
Experience a Smoother Audit Process
With LRS, your large plan audit is no longer a source of stress. Our streamlined approach ensures clear expectations, reduces workload, and provides a more organized and efficient process with:
- Proactive Preparation: We take care of time-consuming tasks, phone calls, emails, and data collection for you, reducing stress and increasing efficiency. Our proactive preparation minimizes last-minute requests and chaos by anticipating audit needs and collecting data beforehand.
- Reduced Workload: By managing the bulk of the audit-related tasks, we reduce your workload significantly. This allows you to focus on what you do best running your business.
- Efficient Timeline: On average, our audits are completed within about 4 to 6 weeks, reducing the duration and intensity of the process.
We understand that audits can be daunting, but with our meticulous attention to detail and deep industry knowledge, we will help you identify potential risks, streamline your documentation, and ensure compliance with all relevant regulations. Our goal is to empower you with the insights and tools you need to not only pass your audit but also improve your overall financial health. In addition to our audit services, we offer a range of resources to help you enhance your financial management skills and stay updated on best practices.
For more tips and information regarding retirement plans, contact us.
