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ERISA COMPLIANCE & RETIREMENT PLAN ASSURANCE

Employee Benefit Plan Audit & ERISA Compliance Services

Independent audits of 401(k), 403(b), defined benefit, and health and welfare plans compliant with Department of Labor (DOL) and ERISA statutory standards.

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  • ERISA Section 103(a)(3)(C)
  • 401(k) & 403(b) Audits
  • DOL Form 5500 Compliance
  • Participant Data Testing
  • Fiduciary Duty Assurance
STRATEGIC PERSPECTIVE

The ERISA Audit Mandate: Protecting Plan Assets and Fiduciary Standing

Strategic Imperative: Under the Employee Retirement Income Security Act (ERISA), plans with 100 or more eligible participants must undergo an independent annual audit to maintain tax-qualified status.

For corporate plan sponsors, managing employee retirement and welfare plans entails significant legal and fiduciary responsibility. Under ERISA and Department of Labor (DOL) regulations, employee benefit plans that cross the 100-participant threshold must undergo an annual independent financial audit to accompany the filing of Form 5500. Flawed benefit plan audits—frequently resulting from inexperienced auditors failing to test operational compliance—trigger severe DOL rejection letters, civil fines of up to $2,500 per day, and personal fiduciary liability for corporate plan administrators.

Routeget’s Employee Benefit Plan Audit practice provides specialized, high-efficiency assurance services designed to safeguard plan participants and ensure complete ERISA compliance. As active members of the AICPA Employee Benefit Plan Audit Quality Center (EBPAQC), our dedicated audit specialists understand the unique accounting, operational, and regulatory intricacies of employee benefit plans.

We conduct ERISA Section 103(a)(3)(C) audits (formerly limited-scope audits) and non-ERISA Section audits across defined contribution plans (401(k), 403(b), profit-sharing), defined benefit pension plans, and health and welfare trusts. We test participant eligibility, payroll contribution timing, loan balances, benefit distributions, and plan investments. By collaborating seamlessly with third-party recordkeepers and plan custodians, Routeget delivers smooth, on-time Form 5500 filings.

CORE ARCHITECTURAL PILLARS

Employee Benefit Plan Audit Capability Matrix

Four specialized audit pillars ensuring participant protection and statutory ERISA compliance.

ERISA Audits

ERISA Section 103(a)(3)(C) & Full-Scope Audits

Conducting statutory audits of 401(k), 403(b), and pension plans compliant with AICPA SAS 136 standards.

Pillar 01 Scope & Governance
Participant Testing

Participant Eligibility, Contributions & Payroll Testing

Testing individual participant records to verify eligibility, accurate deferral percentages, and timely deposit of contributions.

Pillar 02 Scope & Governance
Distributions & Loans

Participant Distributions, Hardships & Plan Loans

Auditing benefit payouts, rollover distributions, hardship withdrawals, and outstanding participant loan schedules.

Pillar 03 Scope & Governance
Fiduciary Governance

Plan Governance & Prohibited Transaction Diagnostics

Reviewing fiduciary committee operations, fee transparency, and screening for statutory prohibited transactions.

Pillar 04 Scope & Governance
TECHNICAL SPECIFICATIONS & SLA COMMITMENTS

Detailed Architecture Specifications & Delivery Governance

Comprehensive functional requirements, implementation guardrails, and enterprise SLA obligations across all operating pillars.

ERISA Section 103(a)(3)(C) & Full-Scope Audits — Detailed Specifications

  • SAS 136 Audit Implementation: Executing standardized audit procedures designed specifically for ERISA employee benefit plans.
  • Certified Custodian Certification Testing: Evaluating custodian certifications from qualifying financial institutions for investment testing exemptions.
  • Plan Document Operational Compliance: Verifying that plan operations conform strictly to executed plan documents and adoption agreements.
  • Form 5500 Attachment Preparation: Drafting compliant financial statements, footnote disclosures, and auditor opinions for Form 5500 filings.

Participant Eligibility, Contributions & Payroll Testing — Detailed Specifications

  • Payroll Contribution Timing Audits: Inspecting payroll transmission dates to identify untimely employee deferral deposits under DOL rules.
  • Compensation Definition Testing: Reconciling payroll compensation definitions (W-2, gross, net) against plan document provisions.
  • Employer Matching & Profit-Sharing Calculations: Verifying mathematical accuracy of employer matching and non-elective contribution formulas.
  • Participant Data Reconciliation: Testing participant demographic records against HRIS files to verify accurate service crediting.

Participant Distributions, Hardships & Plan Loans — Detailed Specifications

  • Distribution Authorization Testing: Verifying participant elections, spousal consent documentation, and required minimum distribution (RMD) rules.
  • Hardship Withdrawal Compliance: Auditing evidentiary documentation supporting safe-harbor hardship events and immediate heavy financial needs.
  • Plan Loan Limits & Repayments: Testing loan originations against statutory IRC limits ($50,000 / 50% vested balance) and payroll repayments.
  • Defaulted Loan & Deemed Distribution Checks: Auditing loan default procedures to ensure timely 1099-R tax reporting.

Plan Governance & Prohibited Transaction Diagnostics — Detailed Specifications

  • Prohibited Transaction Screening: Inspecting transactions with parties-in-interest for statutory ERISA prohibited transaction violations.
  • Fee Transparency & DOL 408(b)(2) Review: Evaluating service provider fee disclosures and revenue-sharing arrangements.
  • Fiduciary Committee Charters: Reviewing investment committee minutes, investment policy statements, and fee benchmarking studies.
  • Remediation via DOL VFCP: Assisting plan sponsors in utilizing the Voluntary Fiduciary Correction Program (VFCP) to cure untimely deposits.
DELIVERY METHODOLOGY

XDRI™ Proprietary Enterprise Delivery Framework

A structured four-phase delivery methodology ensuring predictable outcomes, zero operational disruption, and accelerated time-to-value.

Phase 01

eXplore & Audit

Forensic evaluation of legacy systems, integration dependencies, security posture, and workflow bottlenecks.

Deliverable: Comprehensive Technical Debt Audit & Modernization Charter

Phase 02

Design & Architect

Formulation of target-state cloud architecture, unified data schemas, and governance controls.

Deliverable: Target Architecture Blueprint & Migration Roadmap

Phase 03

Realize & Implement

Agile, sprint-driven implementation featuring automated CI/CD pipelines, zero-downtime cutovers, and UAT.

Deliverable: Validated Production Deployment & Cutover Sign-Off

Phase 04

Impact & Optimize

Hypercare transition, automated telemetry monitoring, proactive tuning, and SLA-governed support.

Deliverable: Continuous SLA Governance & Value Realization Scorecard

QUANTIFIABLE IMPACT

Measurable Business Outcomes & Performance Metrics

Quantifiable operational enhancements achieved through disciplined architecture, automated governance, and cloud optimization.

Operational Efficiency Gain
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Reduction in manual processing workflows across business units

Platform Availability SLA
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Enterprise cloud reliability backed by multi-region redundancy

Faster Decision Cycles
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Accelerated turnaround through unified real-time data models

Audit & Compliance Trail
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End-to-end immutability across regulatory and financial records

EXECUTIVE FAQ

Employee Benefit Plan Audit FAQs

Critical architectural, operational, and licensing considerations for executive leadership and steering committees.

Under ERISA, a plan is generally required to have an independent audit when it has 100 or more eligible participants at the beginning of the plan year. Under the ’80-120 Participant Rule,’ plans with between 80 and 120 participants can elect to file as a small plan (exempt from audit) if they filed as a small plan in the preceding year.
An ERISA Section 103(a)(3)(C) audit allows the auditor to refrain from performing detailed testing on investment values and transactions, provided that a qualifying financial institution (such as a regulated bank or trust company) certifies the completeness and accuracy of those investment statements. The auditor still thoroughly tests participant data, contributions, distributions, and plan operations.
The DOL requires participant contributions to be remitted to the plan trust on the earliest date on which they can reasonably be segregated from the employer’s general assets, but in no event later than the 15th business day of the month following the payroll deduction. For large plans, the DOL typically expects contributions to be deposited within 1 to 3 business days of the payroll date.
Filing Form 5500 without the required independent audit report triggers immediate rejection by the DOL. The DOL may assess civil penalties of up to $2,500+ per day for unfiled or deficient annual reports, and plan fiduciaries can face personal liability for non-compliance.
ENTERPRISE TRANSFORMATION

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