401(K) Plan Internal Controls Improvements

Typically with first-year employee benefit plan audits, there can be errors in the plan where the plan sponsor is not following the plan’s provisions included in their plan document. These are perfect opportunities to work with the plan sponsor and their third-party administrators to strengthen the internal controls of the benefit plan.

This was the case for one of our clients in which, during our detailed testing and recalculation of employee and employer contributions for a sample of employees, we identified:

• The company was using incorrect compensation for deferrals
• Contributions were paid to the participants’ accounts much later than when the plan sponsor could pay them

Fill out the form to download the full case study and learn how, based on our testing results, we worked with the plan sponsor and third-party administrator to identify processes to strengthen their internal control structure to conform with their plan document.