Regular financial statement services are necessary for small company retirement funds like 401(k) plans and SEP-IRAs to maintain compliance with legal requirements and to give participants in the plans accurate information. Among these services are:
Administration of the plan: This covers duties including enrolling employees, gathering contributions, and keeping records.
Testing for compliance includes checking to see if the plan complies with laws like the Internal Revenue Code and the Employee Retirement Income Security Act (ERISA) (IRC).
Investment management entails keeping an eye on and managing the plan's investments.
Calculating the worth of the plan's assets, creating financial statements, and informing participants are all included in valuation and accounting.
Tax compliance: This entails creating and submitting necessary tax documents, like Form 5500.
Audit
services: To ensure compliance with laws and regulations, the financial statement of the plan will be subject to an independent audit.
Recordkeeping: This entails keeping complete records of the assets, donations, and distributions made under the plan.
These services are typically offered by a financial institution that specializes in small company retirement plans or by a third-party administrator (TPA).
Working with a respected financial institution or TPA with knowledge of managing small business retirement accounts and a solid reputation in the industry is crucial for small company owners. The institution should also have a good understanding of the government regulations and compliance requirements for small business retirement accounts.
No comments yet