Marjorie Lucas

In my experience, auditors typically send a formal Request for Information (RFI) or Prepared By Client (PBC) list, outlining exactly what they need and the expected date of their arrival. The scope depends on the type of audit. Below is what is generally requested in a retirement/benefits environment. Auditors almost always request foundational documents first: Plan document (current and prior versions) Adoption agreement Summary Plan Description (SPD) Trust agreement Service agreements (TPA, recordkeeper, custodian) IRS determination or opinion letter (if applicable) Most recent Form 5500 and schedules Auditors will request detailed census data such as: Employee eligibility dates Compensation used for deferrals Hire/termination dates Date of birth (for testing) Hours worked (if eligibility is hours-based) Ownership status (for controlled group testing) They may ask for other items as they review the files.

Your conclusion is correct. You referenced: Vested balance = $25,000 Existing loan = $25,000 50% vested balance limit 50% * $25,000 = $12,500 Maximum total loan amount allowed across all loans $12,500 - $25,000 = ($12,500) ($12,500) is less than 0. Not eligible for any additional loans. All loans cannot exceed the Maximum statutory limit, which is the lesser of 50% of the vested account balance or $50,000

Yes, a participant can generally take multiple 401(k) loans if allowed by the plan; however, care should be taken to ensure that all loans combined do not exceed IRS limits.

You can find forms, instructions, and publications by going to the IRS website at IRS.gov/FormsPubs or IRS.gov/OrderForms. Please keep in mind that it is not for all filers. For plan years beginning after 2013, must file electronically using the FIRE system. Hope, this helps!