401(k) Audit Requirements for Small Businesses
Small vs large plan classification: Learn how participant counts determine whether your 401(k) plan is considered small or large, and when an audit is required for Form 5500 filing.
The 80-120 rule: Understand how this rule provides flexibility for plans near the audit threshold and can affect how you file from one year to the next.
Participant counts: See how recent changes now count only participants with account balances, which may reduce audit requirements for some plans.
Whether a 401(k) plan requires an annual audit depends on how the plan is classified for Form 5500 filing purposes. Plans considered “large” generally require an independent audit, while many small plans are exempt—but the rules depend on participant counts, prior filings, and recent regulatory changes.
Download this simple PDF resource to help you determine your plan’s audit status, understand small vs. large plan rules, and avoid surprises at filing time.