If you’re a 401(k) plan sponsor and it’s August, the October 15 Form 5500 deadline is already looming. Normally, I’d be telling you to make sure your auditor is wrapping up fieldwork by now.
But some of you reading this haven’t even found an auditor yet. Maybe you thought your TPA handled it. Maybe you didn’t find out until recently your plan crossed the threshold. Or maybe an engagement letter’s still sitting unsigned in your inbox.
Whatever the reason, here’s the hard truth: If you haven’t already started working with a 401(k) auditor, the clock is already working against you.
The “Normal” 401(k) Audit Timeline
For a large plan audit done right:
- May–June: Engagement letter signed, document requests sent.
- July–August: Fieldwork testing.
- September: Draft financial statements issued, reviewed, finalized.
- Early October: Final audit report delivered, Form 5500 filed.
The “It’s August and We Don’t Have a 401(k) Auditor Yet” Timeline
If you’re starting in mid-August, here’s what your reality looks like:
Week 1 (This Week):
- Identify and hire an ERISA-experienced auditor immediately.
- Sign the engagement letter within 24–48 hours.
- Send all required documents within days, not weeks.
Week 2–3:
- Auditor begins fieldwork at a sprint—no long pauses, no “we’ll get to it.”
- Expect daily document requests; respond same-day.
Late August–Early September:
- Fieldwork wraps up if everyone’s moving fast.
- Draft financial statements issued ASAP.
- TPA starts finalizing the Form 5500.
Mid–Late September:
- Resolve all findings, corrections, and questions quickly.
- Final audit report delivered.
Early October:
- Sign off, file Form 5500 before October 15.
This schedule leaves zero margin for error. A single delay can push you past the deadline.
What Happens if You Miss October 15?
The IRS penalty is $25/day (up to $15,000). The DOL penalty is $2,529/day with no cap. These aren’t theoretical, they are enforced.
What You Need to Do Right Now
If you don’t have an auditor:
- Find one this week—ERISA plan audits are specialized; don’t waste time on firms without experience.
- Be ready to hand over all plan data immediately—not “after Labor Day.”
- Clear your schedule for audit requests—treat them as same-day priorities.
But here’s some good news: despite starting so late, you shouldn’t be forced into paying outrageous rush fees or inflated “emergency” pricing. There are firms like PriceKubecka that can start your audit today and still have you filed well before the October 15 deadline.
Our fully automated audit process means we can work fast—without cutting corners—while offering a fixed flat fee well below the national average. Even this late in the game, your audit shouldn’t cost more than $15,000.
401(k) Audit Bottom Line
If you’re still auditor-shopping in August, you’re on a crash-course timeline. It’s doable, but only if you act right now. Every day you wait shaves off precious audit time, and October 15 isn’t moving for you.
But acting now doesn’t have to mean overpaying. PriceKubecka has the capacity to start immediately, leverage technology to get you across the finish line, and charge a flat, reasonable fee. Don’t settle for panic pricing when you can get an on-time, compliant, and cost-efficient 401(k) audit starting today. Please CONTACT US to get started.
