Do you know if your company’s retirement plan (aka employee benefit plan) needs an audit in 2021? Are you familiar with your plan’s audit requirements and corresponding deadlines? If not, this is a great place to start. We’ve created the following quiz to help you answer the question, ‘Does my retirement plan require an audit?’
If you’re craving more information about ERISA’s audit requirement, due dates, and who should perform the audit, read our blog post, “This Is When You Need To Have An Employee Benefit Plan Audit.”
Take the quiz! Find out if your retirement plan needs an audit.
Defined contribution plan: a plan that provides an individual account for each participant and provides benefits based on all of the following:
- amounts contributed to the participant’s account by the employer or employee,
- investment experience, and
- any forfeitures allocated to the account, minus any administrative expenses charged to the plan
Examples include 401(k) plans, 403(b) plans, employee stock ownership plans, and profit-sharing plans.
Defined benefit pension plan: a pension plan that defines an amount of pension benefit to be provided, usually as a function of one or more factors such as age, years of service, or compensation. Any pension plan that isn’t a defined contribution pension plan is a defined benefit pension plan.
Health and welfare benefit plan: these plans provide the following benefits:
- medical, dental, visual, psychiatric, or long-term health care
- life insurance (offered separately from a pension plan)
- certain severance benefits
- accidental death or dismemberment benefits
- benefits for unemployment, disability, vacations, or holidays
- other benefits such as apprenticeships, tuition assistance, daycare, dependent care, housing subsidies, or legal services
Your health plan could be a defined contribution health plan or a defined benefit health and welfare plan.
Plan year: 12 months. Your plan year could be a calendar year, January 1 – December 31. Or, it could be an alternative period such as July 1 to June 30.
Eligible participant: an employee who meets plan eligibility requirements at the beginning of the plan year. This includes employees who opt-out or employees who have left the company but still have plan balances.
Have questions about your quiz results and your retirement plan audit requirements? Let’s talk!