April 30, 2016, was the IRS deadline for employers to restate their 401(k), profit-sharing, or other defined contribution (not including 403(b) plans) retirement plans. Failure to comply with new regulations could result in significant IRS fines as well as loss of a plan’s qualified status.
Serving as the administrator of a 403(b) plan is no simple task, and auditing is just one of the many complex duties required. An audit can help ensure the correct amount of money will be available to pay the benefits to the participants while simultaneously keeping the plan sponsor honest regarding the finances of the company.