Be prepared for an audit of your business retirement plan

As you prepare your tax returns, it’s easy to see why a retirement plan is one of the best tax deductions you can get. Contributions to a qualified plan can potentially get you a big tax break — as big as $53,000 with a defined contribution plan or even $100,000 or more with a pension plan. If you’re an employer who sponsors a retirement plan, you don’t want to jeopardize the qualified status of your plan. Today, we are witnessing greater regulatory scrutiny of business retirement plans. Use this checklist to help you avoid some common deficiencies cited by the IRS and/or DOL in their most recent audits. If you need assistance or think you may need to make corrective measures, please contact your third party administrator (TPA) or your financial professional immediately. Plan Disclosures and Documents Do you maintain electronic copies of all your plan documents including your 5500 filings? Best practice: Make sure to scan and electronically save every document you receive from your TPA. This will make responding to an auditor’s request list much easier. Of course, your TPA and/or adviser will be able to assist you, but do make sure you’ve signed and properly dated all