Reminder: Changed 5500 Rules Will Require 2002 Independent Audit for Some Small Plans

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For some small retirement plans (generally, those with fewer than 100 participants), the 2002 plan year Form 5500-series filing might need to include the report of an independent auditor, even though an exemption from the audit requirement was available for earlier years.

As reported in BenefitsLink on October 19, 2000 (see https://benefitslink.com/links/20001019-007439.html), DOL regulations on the audit requirement have changed. They still exempt certain small plans that fit within new guidelines about types of investments and how they are held, or that comply with additional bonding and disclosure requirements.

A brief DOL summary of the changes appears at https://benefitslink.com/site/pr.cgi?database_id=20247.

The full text of the changed regulations appears at https://benefitslink.com/erisaregs/2520.104-41-final.html.

See also:

Information Copy of Form 5500 for 2002 Plan Years

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Editor's note: Thanks to Ronald S. Grossman of Stoel Rives LLP for this tip!