Important Documents For Your 401k Audit

Important Documents For Your 401k Audit

When you are about to go through a 401k audit you are going to be understandably nervous about the whole affair and the reason for this is that you will need to get a lot of things in order. However, the fact of the matter is that as long as you have all of your paperwork there is no need for you to fret. What this essentially means is that you should find all of your important documents and ensure that no matter what happens you would most certainly be able to figure out a way to get through the audit without any unnecessary problems along the way.

One really important document that you should have is a participant statement from all of your employees. This will prove that they all know their money is going into a 401k and that they expect to receive this money at some point. It also shows that the deposits are voluntary, because even if they are aware of it, it’s simply illegal to use someone’s money without first getting their consent because you are the person that is responsible for their money in the first place.

Trust reports are also necessary in this regard because of the fact that they would indicate that your employees are satisfied with you and that they know you are going to give them the money at the end of their employment. Basically the IRS is going to want to know that you are responsible enough to handle all of this money, and if you prove that you are then your 401k fund will continue to operate and help the people that you are thinking of working with in a way that they would really appreciate.

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