If your company sponsors a 401(k) or other defined-contribution retirement plan, federal law may require an independent audit before you can file your Form 5500. Based in Sparks, NV, serving the Reno metropolitan area and clients virtually nationwide.
Employee Benefit Plan Audits
Does Your Retirement Plan Require an Audit This Year?
The 100-Participant Threshold Explained
Under ERISA and Department of Labor rules, most retirement plans with 100 or more eligible participants at the start of the plan year are required to include an independent audit with their Form 5500 filing. If your plan falls below that threshold, an audit generally is not required — and we will tell you that clearly rather than send you through a process you do not need.
Participant counts can shift year to year as your workforce grows, making it easy to cross the threshold without realizing it. If you are unsure whether your plan qualifies this year, we review your participant data against current DOL requirements and give you a direct answer before any filing deadline pressure sets in.
What counts as an eligible participant matters here. The DOL counts active employees eligible to participate, not just those who have enrolled. That distinction catches many plan sponsors off guard. We walk through the numbers with you so there are no surprises.
Related Services
What the Audit Process Covers
A 401(k) audit — formally called an employee benefit plan audit — examines whether your plan's financial statements are presented fairly and whether plan operations comply with the terms of the plan document and applicable federal regulations. The audit is performed in accordance with AICPA standards for employee benefit plan engagements, which set a higher bar than a standard financial statement audit.
Our work covers the areas that matter most to DOL reviewers and plan participants:
- Participant eligibility and enrollment records
- Contribution accuracy and timeliness of deposits
- Loan and distribution transactions
- Investment valuation and reporting
- Plan document compliance and operational consistency
- Financial statement presentation for Form 5500 attachment
Throughout the engagement, you work directly with our team — not a rotating staff of unfamiliar faces. We communicate clearly at each stage and flag issues as they arise, not after the fact.
Why Plan Sponsors Across Nevada Choose Hartmann & Associates
Hartmann & Associates has served employers across Northern Nevada and the broader Nevada region for over 48 years. Our audit practice is built on the same in-house, hands-on approach that defines every service we offer — all work is handled by our team, never outsourced to third parties.
For plan sponsors, that means your audit is not passed off to a subcontractor or managed from a distance. You have a direct line to the people doing the work, and they understand the compliance stakes involved. ERISA audits carry real consequences for non-compliance, including DOL penalties and potential plan disqualification. We take that seriously, and we expect our clients to have the information they need to stand behind their filings.
We serve plan sponsors in Reno, Sparks, Carson City, Fernley, Fallon, and employers across the state who need a Nevada-based auditor with the credentials and capacity to handle their engagement properly.
Frequently Asked Questions
How do I know if my 401(k) plan needs an audit?
The general rule is that plans with 100 or more eligible participants at the beginning of the plan year must include an independent audit with their Form 5500. Eligible participants include employees who are entitled to participate in the plan, whether or not they have actually enrolled. If you are close to that threshold or unsure how to count participants correctly, we can review your situation and give you a clear answer.What is Form 5500 and how does the audit relate to it?
Form 5500 is the annual return that retirement plan sponsors file with the DOL and IRS to report on the plan's financial condition and operations. If your plan is large enough to require an audit, the audited financial statements must be attached to the Form 5500 filing. The audit is not optional in that case — filing without it can result in DOL penalties.What ERISA audit standards does Hartmann & Associates follow?
We perform employee benefit plan audits in accordance with standards established by the American Institute of Certified Public Accountants (AICPA) for EBP engagements. These standards are specifically designed for retirement plan audits and reflect the requirements that DOL reviewers expect to see when they examine a filing.How long does a 401(k) audit typically take?
The timeline depends on the size of your plan, the quality of your records, and how quickly information can be gathered from your plan's recordkeeper and trustee. Most engagements are completed within a few weeks once all materials are in hand. We discuss timing expectations at the start of the engagement so you can plan around your Form 5500 deadline.Can you help if our plan has never been audited before?
Yes. First-time audits require some additional groundwork, including establishing opening balances and reviewing prior-year plan operations. We have worked with plan sponsors who are going through the process for the first time and guide you through what to expect, what to gather, and how to work with your recordkeeper to get us what we need.
