Employee Benefit Plan Audits
401(k) Plan Audit
Modus helps you get a 401(k) plan audit that meets ERISA and DOL requirements, finished on your timeline.
A 401(k) plan audit becomes an annual obligation once a plan grows past a certain size, and Modus helps you get that audit done faster and with far less friction. With Modus, your 401(k) audit gets the rigor of a top firm without the slow timelines and heavy document requests that usually come with it.
What is a 401(k) plan audit?
A 401(k) plan audit is an independent examination of the plan’s financial statements, 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.
The audit exists to protect participants and to give the plan sponsor, as a fiduciary, confidence that the plan is being administered correctly.
Who needs a 401(k) plan audit?
The requirement is generally tied to plan size rather than company size. A plan is typically required to be audited once it reaches a certain participant count.
- 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.
- Sponsors approaching the threshold should plan ahead for their first audit.
What a 401(k) plan audit covers
- Employee and employer contributions, including timeliness of remittances.
- Participant eligibility, enrollment, and census data.
- Benefit payments, distributions, loans, and forfeitures.
- Investment activity, valuation, and income allocation.
- Internal controls and compliance with the plan document.
How Modus helps with your 401(k) audit
Modus helps you get your 401(k) 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 the document behind it.
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.
- Up to roughly 50% fewer questions for your team during fieldwork.
Frequently asked questions
How do I know if my 401(k) plan has crossed the audit threshold?
Count the participants with account balances at the beginning of the plan year. If that number reaches 100, an audit is generally required. The 80-120 rule may let you continue filing as a small plan if you did so the prior year, so confirm your exact count before assuming you need an audit.
When is the audit due?
The audited financial statements attach to your Form 5500, which is generally due seven months after the plan year-end. You can extend that deadline by two and a half months by filing Form 5558. Even so, starting early leaves room for a clean, unhurried process.
How much of my team’s time will the audit take?
Less than you are probably used to. Because Modus’s platform pulls and reconciles data automatically and its workpapers link to source documents, your team fields fewer requests and fewer follow-up questions than with a traditional firm.
Why Modus
Audits at the speed of business
Modus helps you get a faster, higher-quality 401(k) 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 401(k) Plan Audit?
Get a fast, fixed-scope proposal from a Modus audit team.