Plan Audit on a 401(k) Plan that drops below 80 participants

[Guest KellyMusico]

I have a 401(k) Plan that is a 4/30 year-end and each year has laid-off several employees. They have required an audit (over 120 Parts) every year since 1980. During this plan year (03/04) the number of actual participants (including terms w/balances) has now dropped below 80. Will this plan still require an independant audit? Thanks for the help.

[R. Butler]

The plan requires an audit if there is more than 99 participants at the beginning of the plan year. If there less than 100 participants at the beginning of the plan year than audit generally not required, but beware of the small plan audit rules.

[WDIK]

You may also want to refer to this discussion.