Discussion:401k audit - profit sharing
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Discussion Forum Index --> Accounting Questions --> 401k audit - profit sharing
| 27 June 2008 | |
| I got a client that have 3 subs with 401k audit on each. For the CY engagement, one of subs has discretionary profit sharing contribution from employer while the rest of the subs' 401k plans do not get such profit sharing contribution.
The issue is that will it be treated as unallowable profit sharing contributions to the sub if IRS thinks these contributions are discriminative. Coz the other subs do not have them. They are all under common control of one parent company. Does anyone have exprience on such issue? All inputs are appreciated. | |
| 29 June 2008 | |
| Is this a DOL audit? DOL gets involved with ERISA enforcement. I don't think IRS does that anymore. Am I correct? | |
| 30 June 2008 | |
| yes, this is a DOL audit. Well, i don't really if IRS will get involved. That's why I post this question. However, as the auditor, if we notice any noncompliance with IRS standard that might jepordize the entity's tax status, we have to document it as well as document how we communicate with management on this issue. any thoughts? | |
| 1 July 2008 | |
| I may have misread your original post. Is this a certified audit that you are preparing to be attached to the 5500? | |
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