Employee Benefit Plan Audits
403(b) Plan Audit
Modus helps you get a 403(b) plan audit that meets ERISA and DOL requirements, without the usual friction.
A 403(b) plan audit is the annual independent examination required once a 403(b) plan reaches a certain size, and Modus helps nonprofits, schools, and hospitals get that audit done faster and with less disruption. With Modus, your 403(b) audit gets top-firm rigor and AI-native speed on your timeline.
What is a 403(b) plan audit?
A 403(b) 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.
Because 403(b) plans often carry legacy contracts and multiple investment providers, the underlying recordkeeping can be more fragmented than a comparable 401(k) plan.
Who needs a 403(b) plan audit?
The requirement is generally tied to plan size rather than the size of the sponsoring organization. Most 403(b) sponsors are ERISA-covered nonprofits, schools, and healthcare systems.
- 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.
- Governmental and certain church plans may be exempt from ERISA’s audit requirement.
What a 403(b) plan audit covers
- Employee and employer contributions, including timeliness of remittances.
- Participant eligibility, enrollment, and census data.
- Distributions, loans, hardship withdrawals, and forfeitures.
- Investment activity and valuation across annuity and custodial accounts.
- Internal controls and compliance with the plan document.
How Modus helps with your 403(b) audit
Modus helps you get your 403(b) audit done at the speed of business. Its AI-native platform automates the most time-intensive fieldwork, including reconciling data across multiple providers, 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 finance and HR 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 multiple investment providers.
- Up to roughly 50% fewer questions for your team during fieldwork.
Frequently asked questions
How is a 403(b) audit different from a 401(k) audit?
The core requirements are similar, but 403(b) plans often involve legacy annuity contracts and several investment providers, which can make gathering and reconciling records more complex. Modus’s platform is built to consolidate that data quickly so the added complexity does not slow your audit down.
Are all 403(b) plans required to be audited?
No. Governmental 403(b) plans and certain non-electing church plans are generally exempt from ERISA, so they typically do not require an ERISA audit. ERISA-covered plans that reach 100 or more participants with account balances generally do.
When is the audit due?
The audited financial statements attach to your Form 5500, generally due seven months after the plan year-end. You can extend the deadline by two and a half months by filing Form 5558, though starting early keeps the process unhurried.
Why Modus
Audits at the speed of business
Modus helps you get a faster, higher-quality 403(b) Plan Audit — top-firm rigor, source-linked workpapers, and far fewer questions for your team.
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