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401k Audit

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As your business continues to grow and you have enough people who are eligible for your 401(k) or 403b audit plans, it is an innovative idea to have an independent (non-broker/vendor) service fee audit your business’ retirement plan. However, you may be wondering at what point the audit must occur. If you are a smaller company and have not gone through an audit before, you may want to know why it is necessary and what the process is like.

What does an audit entail?

The purpose of an audit of your retirement plan is to ensure that you are not overpaying vendor/advisory fees, offering optimal investments, and are complying with regulations and requirements required by government agencies. An audit is a crucial step for many businesses to take because you may be unaware that your plan vendor fees are too high. This is welcome news, however, because once you determine that there is a problem, we can work to fix it so that there is minimal risk to your company and to your employees.

At what point do I need to conduct an independent fee retirement audit?

Whether you have two employees or 20,000+ it is always a good idea to have an independent third-party review of your existing vendor fees. The Department of Labor (DOL) in the USA is aggressively seeking organizations to make sure they are in line with retirement fees. They will request information and the DOL will conduct their own audits. If fees are too high, fines can be imposed, and many organizations are being sued on top of government fines.

What occurs during an audit

When you engage PolicySmart services, you want to know what we will look at. Some of these things are:

  • Making sure that your vendor/advisor fees are in line with industry peers.
  • 408(b)2 fee reviews 
  • Fee reviews to include recordkeeping, custodial, trustee, advisory and CPA fees.
  • Reviewing plan distributions and ensuring that participants were fairly compensated.
  • Reviewing your investment policy statement.

Other Corporate Retirement Services

  • Form 5500 Assistance
  • PEP (Pooled Employer Plans) feasibility studies
  • Defined Benefit vendor fee reviews
  • Assistance in creating an investment policy statement

FAQs About Corporate Retirement Services

More Questions?

See FAQs
No, however many organizations will conduct open enrollment during a medical renewal.
Yes, whether your plan is active or frozen we look at the vendor fees, actuarial fees, accounting fees and administrative fees.
Yes, we look at the cost associated with providing advisory services.
Yes.

Other Corporate Retirement Services

408(b)2 Fees

Ensure your 408(b)2 Fees are reasonable and prepare your employees for a secure retirement.

Corporate Retirement Plans

Sourced from over 2,200 brokers/vendors in our global network with over $30 trillion in assets, find the competitive corporate retirement plan that perfectly suits your company’s needs.

Advisor Fees

Objectively review your advisor fees and decide on an affordable and qualified vendor that is the best match for your business.

Custodial and Record-Keeping Fees

Ensure your custodial and record-keeping fees and services are reasonable and competitive.

DOL Audit Compliance

We help ensure your company is in complete compliance with the U.S. Department of Labor.