Assurance Financial Services (AFS) would like to remind you that if your company’s retirement plan requires an annual audit, it’s recommended that you secure your auditor’s services soon. Engaging your audit services soon will allow enough time for your auditor to prepare the audit report required for large plan Form 5500 filers.

Generally, plans with over 100 participants require the report of an auditor to accompany their 5500 filing. A “participant” is defined as (1) any actively participating employee, (2) any retired, deceased, or separated employee that still have assets in the plan, (3) all eligible employees who have yet to enroll or have elected to not participate. However, if you filed as a small plan for the 2017 plan year and the number of participants is fewer than 121 as of the beginning of the 2018 plan year, you may continue to file as a small plan under the 80-120 Participant Rule. This rule allows plans with between 80 and 120 participants at the beginning of the plan year to file the Form 5500 in the same category (large plan or small plan) as the prior year filing.

If you don’t require the services of an auditor or if you’ve already engaged your audit firm, you may disregard this general reminder. If you are unsure of what your audit requirements may be, please reach out to the AFS team.

Securities offered through Kestra Investment Services, LLC (Kestra IS), member FINRA/SIPC. Investment advisory services offered through Kestra Advisory Services, LLC (Kestra AS), an affiliate of Kestra IS. Assurance Financial Services, Ltd (AFS)  and Assurance Agency, Ltd (Assurance) are not affiliated with Kestra IS or Kestra AS. AFS is a wholly owned subsidiary of Assurance.