What is the 80/120 Rule for 401k Audits?

The rules and regulations surrounding the administration of 401(k) and other retirement plans can often be complex and confusing. Plan administrators need to ensure they are following the framework outlined in the plan documents while adhering to the broader regulations required by the IRS and Department of Labor (DOL). A key consideration many growing plans need to carefully consider is when they are required to receive an independent audit of the plan’s financial statements, also known as a benefit plan audit.