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What Do You Need For a 401k Audit?

It’s okay to be nervous about a 401k audit because after all your entire company is going to be analyzed in a way that you might not be ready for at all and at the end of the day you are the only person that might have a chance of helping the company get through the audit in any serious way, shape or form. The first thing that would be on your mind would probably be the various 401k audit requirements, and this can be understood by first thinking about what a 401k is meant to analyze.

Your company’s books are going to be looked at quite closely this much is obvious but that’s not the only thing that people are going to be talking about. Another thing that most auditors are going to be looking at quite closely would have quite a bit to do with your payroll register. Essentially, you need to have kept a record of the kind of payments you have made to your employees, and if you have been making regular deposits into a 401k scheme then there needs to be a record of this as well.

What an auditor will do is that they will look at how much money is in the account and then they are going to figure out where this money came from. 401k accounts are often used for money laundering and this is a big part of the reason why these audits happens in the first place. Having a record of where the money came from will help solve this issue quite easily, thereby enabling you to focus on what truly matters which is making sure that your company is running as smoothly as possible.