Was 2022 the year you were finally on the hook for a 401(k) audit? Let’s explore the regulatory shifts that could be a game-changer for your 2023 plan year.
The New Audit Landscape
The audit criteria changed at the end of 2022, and now only participants with balances are in the audit crosshairs. So, if you’re hovering around 100, this one’s for you.
Streamlined Actions for 2023
1
Revisit your participant count—only those with balances.
2
Use the $5,000 force-out rule to strategically reduce your participant count by year-end 2023.
3
Plan ahead: In 2024, the force-out limit will increase to $7,000, giving you more room to avoid an audit.
The Bigger Picture
This isn’t about dodging obligations but about proactively managing your governance.
Need more options?
WELLthBuilder can significantly diminish, or even eliminate, audit responsibilities. Intrigued? Reach out to learn more.
WELLthBuilder is presented by Strategic Retirement Partners (SRP), a leading national team of retirement plan-focused financial advisors. Let’s talk about your company’s retirement plan needs.