Information Resources
ERISA Plan Audit Requirements
Generally, if the number of participants with account balances at the beginning of the plan year is 100 or more, independent audited plan financial statements must be filed with the plan’s annual return/report (Form 5500). Contact us if you have any questions concerning participant counts, audit requirements, or Form 5500 reporting requirements.
The 80-120 Rule
If the number of participants with account balances at the beginning of the plan year is between 80 and 120, and a Form 5500 Annual Return/Report was filed for the prior plan year, you may elect to complete the return/report in the same category (‘‘large plan’’ or ‘‘small plan’’) as was filed for the prior return/report. Thus, if a Form 5500-SF or a Form 5500 Annual Return/Report was filed for the prior plan year as a small plan, including the Schedule I if applicable, and the number of participants with account balances on the current year Form 5500 is 120 or less, you may elect to complete the current Form 5500 and schedules in accordance with the instructions for a small plan, including for eligible filers, filing the Form 5500-SF instead of the Form 5500. Eligible small plans do not require an independent plan audit. See “Small Plan Audit Waiver Regulation” for more information.
