Employee Benefit Plan Audits
Defined Contribution Plan Audit
Modus helps you get a defined contribution plan audit that meets ERISA and DOL requirements, faster.
A defined contribution plan audit is the annual independent examination required once a plan reaches a certain size, and Modus helps sponsors get that audit done faster and with less friction. With Modus, your defined contribution plan audit gets top-firm rigor and AI-native speed on your timeline.
What is a defined contribution plan audit?
A defined contribution plan audit is an independent examination of the financial statements of a plan where benefits are based on individual account balances, conducted to satisfy the reporting requirements of ERISA and the Department of Labor. It covers contributions, distributions, participant data, investment activity, and internal controls, and results in an opinion on whether the financial statements are fairly stated.
Defined contribution plans include 401(k), 403(b), profit-sharing, money purchase, and ESOP arrangements, all of which allocate assets to participant accounts.
Who needs a defined contribution plan audit?
The requirement is generally tied to plan size rather than company size, and it spans several plan structures.
- Plans with 100 or more eligible participants generally require an audit.
- Participants are counted based on those with account balances at the beginning of the plan year.
- The 80-120 participant rule lets some plans keep filing as they did the prior year.
- Profit-sharing and money purchase plans are covered alongside 401(k) and 403(b) plans.
What a defined contribution plan audit covers
- Employee and employer contributions, including timeliness of remittances.
- Participant eligibility, enrollment, and census data.
- Distributions, loans, forfeitures, and account allocations.
- Investment activity, valuation, and income allocation to accounts.
- Internal controls and compliance with the plan document.
How Modus helps with your defined contribution plan audit
Modus helps you get your defined contribution plan audit done at the speed of business. Its AI-native platform automates the most time-intensive fieldwork, which is how a Modus-supported audit can target a turnaround of roughly four weeks. Workpapers are source-linked, so each figure traces back to its supporting document.
That efficiency changes your experience. Modus’s platform cuts the document requests and questions your team fields, so your payroll and finance staff spend less time servicing the audit.
Why choose Modus
- Top-firm audit rigor at a middle-market price.
- A target turnaround of roughly four weeks to keep your Form 5500 deadline comfortable.
- Source-linked workpapers for full traceability across account-level activity.
- Up to roughly 50% fewer questions for your team during fieldwork.
Frequently asked questions
Which plans count as defined contribution plans?
Defined contribution plans are those where benefits depend on individual account balances, including 401(k), 403(b), profit-sharing, money purchase, and ESOP plans. Each allocates contributions and investment returns to participant accounts rather than promising a fixed benefit.
How is this different from a defined benefit audit?
A defined contribution audit centers on account balances and allocations, while a defined benefit audit centers on actuarial obligations and funding. The counting threshold for requiring an audit is generally the same at 100 or more participants.
When is the audit due?
The audited financial statements attach to your Form 5500, generally due seven months after the plan year-end, extendable by two and a half months via Form 5558. Starting early leaves room for a clean, unhurried process.
Why Modus
Audits at the speed of business
Modus helps you get a faster, higher-quality Defined Contribution Plan Audit — top-firm rigor, source-linked workpapers, and far fewer questions for your team.
More Employee Benefit Plan Audits
Related services
Ready to talk about your Defined Contribution Plan Audit?
Get a fast, fixed-scope proposal from a Modus audit team.