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Just Found Out Your 401(k) Plan Needs an Audit?

by | Jul 25, 2025

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.

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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:

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.

Frequently Asked Questions

What should I do if I missed the October 15 Form 5500 deadline?

First, confirm that October 15 was actually your plan’s deadline and that a valid extension applied. If the deadline has passed, determine what is preventing the Form 5500 from being completed. If a required 401(k) audit is unfinished or hasn’t started, contact an experienced employee benefit plan auditor immediately and work with your other advisors to determine the appropriate filing and penalty-relief options.

Can you file Form 5500 after the deadline?

Yes. A delinquent Form 5500 can still be filed after its due date. Filing late does not eliminate the filing requirement, however, and potential DOL and IRS penalties may apply. Eligible plan administrators may be able to use the DOL’s Delinquent Filer Voluntary Compliance Program to reduce certain penalties.

What are the penalties for filing Form 5500 late?

The Department of Labor may assess substantial civil penalties for failure to file a complete and accurate Form 5500. Current Form 5500 instructions state a potential DOL penalty of up to $2,739 per day. The IRS can separately assess $250 per day, up to $150,000 per plan year, for certain late Form 5500-series filings. Actual penalties and available relief depend on the circumstances.

What is the DOL's Delinquent Filer Voluntary Compliance Program?

The DFVCP is a Department of Labor program that allows qualifying plan administrators to voluntarily submit delinquent Form 5500 filings and pay reduced civil penalties. Eligibility generally requires correcting the filing before the DOL has provided written notice of the failure to file.

What if my 401(k) audit hasn't started and the Form 5500 deadline has already passed?

If your plan is required to have an independent audit, missing the Form 5500 deadline does not remove that requirement. Contact an employee benefit plan auditor as soon as possible, explain that the filing is already late and determine what records are needed to begin the audit immediately. Work simultaneously with your TPA and other advisors to address the delinquent filing and determine whether penalty-relief options are available.

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