401k Pension Plan Audits

How do you know if your company's 401(k) plan needs an audit?

Did you know the federal government mandates ERISA employee benefit plan audits?

Under the requirements of ERISA (Employment Retirement Income Security Act) Section 103, employee benefit plans with 100 or more participants are considered ‘large’ plans. These large plans must have an employee benefit plan audit performed by an independent certified public accountant. They also must file a Form 5500 annual report, a government form jointly developed by the Department of Labor (DOL) and the Internal Revenue Service (IRS).

Plans with fewer than 100 participants at the beginning of the year are considered ‘small’ plans and are eligible for the Small Pension Plan Audit Waiver. The Department of Labor (DOL) however has identified the range of 80 – 120 participants (this number is determined at the start of the plan year) as a grey area. In this grey area, a company has the option to continue as a ‘small’ plan or elect ‘large’ plan status. The choices for a plan falling into the 80 – 120 participant range are as follows:

Number of Participants at Beginning of Current Year	Requirements Followed for the Previous Year Form 5500	Requirements to Be Followed for the Current Year Form 5500
80 – 99 (inclusive)	Small plan	Small plan
80 – 99 (inclusive)	Large plan	May elect to file Form 5500 again as a large plan or switch to a small plan
100 – 120 (inclusive)	Small plan	May elect to file Form 5500 again as a small plan or switch to a large plan
100 – 120 (inclusive)	Large plan	Large plan
More than 120	Large plan	Large plan
More than 120	Small plan	Large plan

As a manager or executive, YOU are the fiduciary

Are you meeting the responsibilities to your plan and employees?

Our guide outlines what you need to do to meet your obligations such as:

Reviewing plan documents
What can happen with incorrect contributions
Understanding the plan fees

DOWNLOAD GUIDE

What should you expect to pay for a 401(k) plan audit?

Great question. It depends on the complexity of your plan. What makes your plan complex?

Is this your first year that you need an audit?
Do you need a Limited Scope or Full Scope Audit?
Are you changing 401(k) plan providers?
Has your company incurred a lot of turnover this year?

REQUEST A QUOTE

LSL is proud to be a member of the American Institute of Certified Public Accountants (AICPA) Employee Benefit Audit Quality Center.

What Our Clients are Saying

“For years I always receive the great service and enjoy working with them.”

Michiko ~ Orange Bakery, Inc.

“LSL has been a pleasure to work with as they are more of a partner versus a vendor. They always deliver high quality services that makes our organization want to continue doing business with the CPAs and Advisors.”

Anna Marie ~ Custom Goods, LLC

“I can highly recommend LSL CPAs in general and Maria Arriola in particular. They have been as efficient and as unobtrusive as possible while maintaining a very pleasant work style. During the COVID lockdown while we are all working from home they adapted and were very understanding with the difficulties of working with multiple people in different areas with no one having access to materials kept in the office. Audits are never “fun’; but at least they try to make it as painless as possible, which especially now is a testament to them.”

Russell Dean ~ Chief Financial Officer I Palisades Media Group

Make sure your 401K audit is in the right hands

REQUEST A 401K AUDIT QUOTE

Meet Your Team

Our team has over 27 years’ experience in auditing 401k plans. Our combined knowledge and experience means you won’t need to re-educate our staff every year. Your audit will be handled smoothly and efficiently without overburdening your team.

Maria Arriola, CPA
Partner
Maria Arriola, CPA

Partner

[email protected]
714-569-1000
For over 30 years, Maria has served clients in a variety of areas including financial statement audits, reviews and compilations as well as business and individual taxation. Maria excels working with clients in the real estate, and healthcare industries, along with employee benefit plans.

Maria manages our not-for-profit and ERISA Pension Plan Audit Department. She has experience auditing labor unions, associations and 401(k) plans. Maria leads her department in staying up to date on the ever-changing trends, laws and Department of Labor regulations.

As an expert in the real estate industry Maria brings tax strategies such as Cost Segregation, 1031 exchanges, debt restructuring, capital financing and cash flow projections to the table. Maria manages LSL’s Cost Segregation department and is responsible for the implementation and completion of all Cost Segregation studies. Maria is involved with Commercial Real Estate Women of Orange County (CREW-OC), one of the leading commercial real estate organizations for executive women in Orange County.

Maria’s passion is to help run manufacturing and distribution businesses with specialization in international business entering the US market. Her focus is on overseas production including business expansions. Maria understands the complexities of manufacturing accounting and business advice in such a unique industry.

Great Clients for Maria…value a partner in their business to help guide them to greater success.
LSL candidate tip… Ask her about her kids and traveling and her big fat Cuban Family.
Personal… Her son, Kyle, was married in August 2018.

Professional and Civic Involvement:

Firm member, PrimeGlobal
Member, American Institute of Certified Public Accountants (AICPA)
Member, California Society of Certified Public Accountants (CalCPA)
Member, Commercial Real Estate Women of Orange County (CREW-OC)
Member, Western Pension & Benefits Association
Licensed as a Registered Representative and Life Agent

Education:

B.A. degree in Business Administration with an Accounting emphasis, California State University, Fullerton
Adam Odom, CPA
Partner
Adam Odom, CPA

Partner

[email protected]
714-672-0022
It takes a lot of strategy and endurance to work in assurance, but Adam Odom just imagines himself on a green field racing toward the goal.

Encountering challenges, circling around to try another route, knowing the rules and working in a team are the sports analogies Adam employs when researching and performing audit services for closely held businesses as well as entertainment venues. The more complex the rules and the strategies he needs to consider, the more rewarding it is to successfully complete an engagement at LSL CPAs. His end goal every time is the accuracy of financial statements and sufficient controls to advance the client’s vision.

After graduating with an accounting degree in 2006, Adam was immediately hired as a staff auditor. He joined LSL in 2013 as an audit manager to oversee a variety of audit engagements and to train staff. Among private companies, he has particular experience with auto dealership accounting, manufacturing and construction. In addition, he has experience working with entertainment venues including convention centers, stadiums, arenas and theaters. He performs 401(k) audits for larger companies as well as reviews, compilations and audits of financial statements. He will also consult on best practices and controls for specific areas of a client’s business or organization. His favorite projects involve research and structuring of new entities and advising on best practices for closely held businesses. Mentoring LSL staff to be better auditors and consultants is especially rewarding.

Great Clients for Adam… need research on business processes or have multiple entities to organize.
LSL candidate tip… Mention your favorite soccer team or offer to take him golfing.
Personal… Beautiful wife, LuAnna, and two amazing children. He coaches soccer for both of his children. Adam is a member at Inland Hills Church.

Professional and Civic Involvement:

Firm member, PrimeGlobal
Orange County, Business Advisory Network (BAN)
American Institute of Certified Public Accountants (AICPA)
California Society of Certified Public Accountants (CalCPA)
Member, Auto Dealer Office Management Association (ADOMA)
Member, International Association of Venue Managers (IAVM)

Education:

Bachelor of Science degree in Accounting, Vanguard University of Southern California

Adam is a member of our Automotive Accounting Team
Chris Vasquez, CPA
Senior Manager
Chris Vasquez, CPA

Senior Manager

[email protected]
714-569-1000
Chris has over 15 years of experience in public accounting. He joined the LSL team in 2002.

Chris has a broad range of industry experience including manufacturing, real estate, and service companies. His areas of expertise include complex audit, review, and financial reporting issues and ERISA employee benefit plan audits.

Chris manages the majority of the firms’ review and audit engagements.

Professional and Civic Involvement:

Firm member, PrimeGlobal
Member, American Institute of Certified Public Accountants (AICPA)
Member, California Society of Certified Public Accountants (CalCPA)
Member, Western Pension & Benefits Association

Education:

Bachelor of Science in Accounting, Chapman University
Kiyomi Shiota, CPA
Senior Manager
Kiyomi Shiota, CPA

Senior Manager

[email protected]
714.569.1000
Kiyomi Shiota has a green thumb. Her knack for growth, however, is with people and businesses.

As a senior assurance manager, Kiyomi oversees audit engagements and completes technical reviews of financial statements. She also assists with staff training and development. Kiyomi is known for being patient and flexible. She is proud to help others become successful, and is a high performer herself.

Kiyomi started her audit career at a Big Four firm and worked in the assurance department for 16 years, including an overseas tour to Japan. She joined ELLS Certified Public Accountants and Business Advisors in 2017 and continued with the firm after it merged with LSL CPAs and Advisors in January 2018. She primarily works with clients in construction, healthcare, distribution and not-for-profit. Clients have access to a wealth of resources and experience through Kiyomi and her colleagues.

Great Clients for Kiyomi… are open to new ideas that will benefit their business.
LSL candidate tip… Talk about your resiliency and ability to embrace change.
Personal… Kiyomi is an animal lover and known by her friends as being reliable. She’s often the first person they call for help.

Professional and Civic Involvement:

Firm member, PrimeGlobal
American Institute of Certified Public Accountants (AICPA),
Member, California Society of Certified Public Accountants (CalCPA)
Member, Supervisory Committee for Altura Credit Union
Volunteer, Red Bucket Equine Rescue

Education:

B.S. in Accounting, California State University, San Bernardino
Jocelyn Potter, CPA
Partner
Jocelyn Potter, CPA

Partner

[email protected]
(916) 503-9691
Jocelyn chose the accounting profession because it allows her to take a holistic approach to helping clients and their organizations while, in turn, making them feel that they are part of a bigger team accomplishing more together. She loves the sense of community in the accounting industry and being able to work with other professionals to provide our clients with the best service.

After finishing a calculus class a year early in high school, Jocelyn’s teacher recommended she take a local class in accounting. From there, Jocelyn found her love for numbers, structure, and balance and went on to become a CPA.

As a partner in our Audit & Assurance department, Jocelyn assists privately held businesses with audit, internal controls and implementing new systems, including workflow, user access, and gaps in internal controls. Because accounting regulations change rapidly and the software that supports those guidelines rolls out at breakneck speed, Jocelyn’s dual degrees in Accounting and Information Systems & Decision Science serve any company with challenges to keep current with both.

Jocelyn is also a “professor” at LSL, serving on her department’s committee to research, train, and implement ASC (Accounting Standards Codification) Topic 842 for Leases. FASB issued this update to increase transparency and comparability among organizations by recognizing lease assets and liabilities on the balance sheet and disclosing key information about leasing arrangements.

Great Clients for Jocelyn … clients with problems to solve: she recently helped a client having trouble with their fixed asset management software while implementing a new Enterprise Resource Planning (ERP) system.

LSL candidate tip … Businesses who value help with accounting and systems.

Personal … Outside of work, Jocelyn enjoys spending time with her husband and two corgis, baking, and sharpening her mind with jigsaw puzzles.

She is a fan of live shows, especially comedy shows and musicals. Her favorite comedians are Bill Burr and Tom Segura. Meanwhile, “Yellowstone,” “Jack Ryan,” and “Stranger Things” top her list of great series’ to watch when she’s not hiking and exploring the beautiful outdoors.

Professional and Civic Involvement:

AICPA, CalCPA, Firm Member of PrimeGlobal

Education:

BS in Business Administration in Accounting and a BS in Information Systems and Decision Science, both from California State University, Fullerton
Erika Aaron, CPA
Manager
Erika Aaron, CPA

Manager

[email protected]
714-672-0022
When you are personally interviewed by a future managing partner, it leads to good things. Erika joined LSL CPAs through an on-campus interview and was hired a couple weeks after graduation in 2002.

She has steadily moved up the career ladder to manager, providing accounting and assurance services primarily to municipal, commercial and automotive accounting clients. She describes herself as loyal, to the firm and to her clients. Her favorite time of day is digging into the financials of her clients and helping them put everything in proper order.

In fact, Erika’s love of accounting expands into her personal life. She lends free time and expertise to her local church finance committee. She has also stayed active in her college sorority by helping a local chapter house maintain a safe and functional facility.

Great Clients for Erika… like detail-oriented management of their accounting and audits.
LSL candidate tip: Talk about your dogs.
Personal: She and her husband bought their first home recently and enjoy attending Angels baseball games and staying active outdoors.

Professional and Civic Involvement:

American Institute of Certified Public Accountants (AICPA)
California Society of Certified Public Accountants (CalCPA)
Member, Auto Dealers Office Management Association (ADOMA)
Member, Gamma Phi Beta Sorority, treasurer of local Affiliated House Corporation Board

Education:

B.A. degree in Business Administration with Accounting emphasis, California State University, Fullerton.

GET TO KNOW US

Webinar On-Demand

We’ve asked David Bass and Chris Castro from Transamerica to join LSL partner, Maria Arriola, CPA, to share what other companies are doing to streamline the internal administration of their 401(k) plans through automation.

WATCH ON DEMAND

Alternatives to CalSavers (Because You Don't HAVE to Use It)

The DEADLINE for companies with 5 or more employees is June 30, 2022.

You may think you have to choose CalSavers to meet the retirement plan mandate in California, but you can use other vehicles. We think CalSavers is less than ideal.

As long as you offer some retirement plan to your employees (that meets the state criteria), you are in compliance. For instance, you can offer a 401(k) or a SEP IRA and other variations on a theme in lieu of CalSavers. Some easy-to-use alternatives offer advantages to your employees and more tax benefits to you, the employer.

LEARN MORE