Are 403B Audit Services Essential?
There are multiple retirement plans available for US employees. One such popular retirement plan is the 403(B) plan. People are generally confused between 401 and 403 plans.
In this blog, we will discuss 403(b) retirement plans in depth and distinguish between 401 and 403 retirement plans. We will also see why 403(b) audit services are essential.
Understanding: 403B
403(b) plan is popularly known as tax-sheltere for employees from thor employees from the public or employees from thor employees from the public schools and certain other 501 (c ) (3) tax-exempt organizations. It allows contributors to contribute flexibly and opt for loans and hardship distributions when required. The eligible employers who can invest in this retirement plan are public schools, colleges or university employees, and employees of churches. Employees from other charitable entities under Section 501 (c ) (3) of the Internal Revenue System (IRS).
Both employer and the employee can contribute to this retirement plan. Some of the 403(b) retirement plans are subject to annual requirements of Form 5500 filing.
Difference Between 403B and 401(k)
The major difference between the both is the employer that offers them. 401k plans are applicable to private and for-profit organizations. In comparison, 403B retirement plans are for public employees who are employed with tax-exempt organizations such as not-for-profits.
Other than the employer, one key difference between both retirement plans is that 401(k) plans offer multiple investment options such as stocks, mutual funds, annuities, bonds, 401(k) plans offer multiple 401(k) plans offer numerous investment options such as stocks, mutual funds, annuities, bond, 401(k) plans offer multiple investment options such as stocks mutual funds, annuities, bonds, etc. Contrarily, 403(b) retirement plans only provide a few investment options, like mutual funds and annuities.
They also vary in terms of expenditure; since authorities do not want to burden the non-profit organizations, the 403(b) retirement plans are less expensive in comparison to the 401(k) retirement plans.
One common thing in both these retirement plans is that they both are offered by employers to employees with a full-time jobs.
Why is 403B auditing important?
Before 1974, 403(b) retirement plans were not required to comply with the annual 5550 reporting. But the introduction of the Employment Retirement Income Security Act (ERISA) in 1974, had made it mandatory for 403b to comply with the annual 5550 reporting like other retirement plans.
Since retirement plans have to comply with regulations from multiple organizations, such as ERISA, the Department of Labour (DOL), and the Internal Revenue System (IRS), it is not easy for ordinary people to comply with them altogether. Therefore, a 403(B) audit services provider is essential.
Critical Advantages of opting for Harshwal’s 403B Audit Services
Harshwal & Company LLP is a top-rated CPA firm in the USA offering multiple retirement plan audit services. The auditors here are EBP audit specialists and have been providing auditing services for decades. The firm helps clients by adopting innovative and robust plans to deliver excellent 403B audit services. Some of the critical auditing services for retirement plans are reviewing plan documents and operating procedures, facilitating RFP procedures, providing assistance for the best plan to sponsor, and many more.
Hire the experts at HCLLP and get the best retirement plan audit plans.
