With all due credit to Rod Serling, the creator of the Twilight Zone…
Between what can be seen and what must be feared, between what remains consistent and what continuously changes, between the light of completion and the darkness of the next correction or regulatory deadline, lies the future of retirement plan compliance.
While we can take time for a somewhat lighthearted tongue-in-cheek introduction, I assure you that retirement plan compliance is real, and … never ending.
Entering Another Dimension – 5500 Filing and your Auditor Opinion
Trying to do what is best for your organization and the employees is a challenging job. As noted above, between the light of completion and the darkness of the next correction or regulatory deadline there’s plenty to occupy your time and prey on your worries.
Over the first months of this year (and every year really), you’ve encountered the whirlwind of census submission for nondiscrimination testing, distributions for ADP/ACP failures, first year MRD confirmation and distributions, the 5500 questionnaire and draft, and trying to choose the right time to schedule your plan audit.
Whew, this is a lot for the first months of the year, and this is only for your retirement plan. Add your own organization’s growing list of demands, which is no doubt also a heavy lift; which includes your 2018 Health and Welfare benefit plan management responsibilities which consists of several rounds of renewal planning followed by open enrollment and much more.
Back to retirement, on the horizon, you have the 5500 deadline, July 31st. This date is less than 30 business days away. You and I both know that it is ideal to have your audit completed by then. So once more, if you haven’t already, it’s time to file for an extension, shifting the deadline to October 15th.
With regards to filing for the 5500 extension, you’re not alone, many Plan Sponsors don’t make the July 31st deadline. There is no right or wrong, but why not just get this off your plate sooner rather than later? I know the answer, THERE IS NO TIME.
Nonetheless, hopefully, come October 15th, you will receive a clean bill of health on your plan audit, but if not, your auditor will hand over their findings, which will require some leg work in correcting.
You Don’t Have to Do This Alone!
Let me reduce your worry. Let me establish and implement the process. I promise that this process will benefit you in years to come. You will then be able to knock out the 5500 and plan audit by July 31st. Let’s create something we can replicate every year.
But We Didn’t Consider You In Our Annual Budget
No worries. There are several ways you can pay for my services. Being that an audit is a requirement in maintaining your retirement plan, there are several solutions that I can propose that won’t impact your budget. Send me a message and we can discuss this further within the context of your operating environment.
Let’s Not Get Stuck in the IRS and DOL Audit Dimension
On another note, although you may meet your independent audit requirements every year, there isn’t a retirement plan out there that is exempt from an IRS or DOL audit. In the highly energized fiduciary environment that we find ourselves in these days, let’s work towards staying ahead of the curve by establishing internal controls for the internal operational management of your retirement program. If you happen to get a knock on the door from either agency, you will be ready.
You can reach me at 817-690-5430 or erika.chavez@abacusrpc.com.
Erika M. Chavez, Principal