If your advisor just told you your company’s 401(k) plan now requires an audit, you’re not alone — and you’re not out of time. But with the July 31 Form 5500 deadline just days away, you need to act quickly. Here’s what you need to know right now.
Why Your Plan Needs an Audit Now
Here’s the short version: If your company’s 401(k) plan had 100 or more eligible participant accounts on the first day of the plan year, you’ve hit a threshold that triggers an annual audit requirement under ERISA.
What Happens If You Skip the Audit
Let’s be clear: the Department of Labor doesn’t take kindly to ignoring 401(k) filings. Missing or skipping the audit can lead to:
- Rejected Form 5500 filings
- Penalties up to $2,529/day
- IRS and DOL scrutiny — and possible plan disqualification
But you still have options if you move now.
Here’s What to Do Today (not Tomorrow)
✅ 1. Confirm You Need an Audit
Get a clear yes/no from your plan advisor or TPA.
✅ 2. File an Extension
If you won’t be ready by July 31, file Form 5558 now. It gives you until October 15.
✅ 3. Hire an Auditor
Many auditors take weeks just to return your call. But EBP audit specialists like PriceKubecka can move fast, work directly with your TPA, and take a lot of the burden off your internal team.
What the Auditor Will Need from You
- Plan documents
- Payroll + contribution records
- Census data
- Investment + loan/distribution reports
The right firm will guide you through all of this and minimize the lift on your side.
Good News: This Doesn’t Have to Be a Mess
With traditional CPA firms, 401(k) audits can be slow (think months) and expensive (think $15,000-$30,000)! But firms like PriceKubecka that have embraced a tech-enabled process are changing that with:
- Flat pricing
- Fast turnaround (think weeks)
- A fully remote process that only requires a few hours of your time.
The Clock Is Ticking — Here’s the Bottom Line
July 31 is just days away. If you’re scrambling, you’re not alone — but you do need to act fast:
- File Form 5558 now
- Get an audit firm on board immediately
- Don’t panic! Reach out to PriceKubecka to start your audit process today, and get peace of mind that your plan (and your deadline) is in good hands.
