DOL examination

[Guest lbz123]

We received notice from the DOL that they are examining our 401k plans. They I've been advised they will come onsite in a couple of months for a interview that will last a couple of hours. I've never been through a DOL examination for a 401k plan, so I just wondered if anyone had any tips or insight on what we should expect, or suggestions on how best to prepare. I've been through DOL audits of other plans (welfare and pension) but they never included an onsite visit.

[Madison71]

I have been through several of these on our plans. This last time around we got a law firm involved. I think it makes sense as you can then have it off-site in a controlled environment. Normally they request the documents and review them on-site. This can last a day or a longer depending on what they are looking for. They will then have the hour or two interview. It has the potential for being much more serious when the DOL gets involved and you want to keep the initial probing questions to a minimum and addressed by an ERISA attorney who knows what they are looking for. You will have to most likely be required to be present for a in-person interview at the end of their initial review, but you will have an attorney present who can council you before you go in. Highly recommended at least from my experience. The DOL finds issues in the majority of their audits.

[K2retire]

If you're using a third party administrator, start by asking their advice. They are likely to be able to recommend an ERISA attorney for you.

[Guest lbz123]

Thanks for your thoughts. Unfortunately, the department head feels having our outside erisa attorney involved is not necessary. I feel it may be worth it if just from a standpoint of containing the examination. They are requesting over 3 years of payroll and funding data. While I feel our procedures are thorough and our funding very timely, with that wide of a window, there will surely be something can be nitpicked or debated if they are so inclined.

The examiner has requested all documentation be mailed to him in advance, and so far has only indicated coming onsite for an interview that will last "between 2 hours to half a day at most." I can't imagine, though, going through all of that documentation in that short of a time period.

[Guest Mauiorbust]

Great idea to get your third party administrator involved. Some are willing and able to host the audit at their office. At a minimum, they can work with you to get the requested materials in order and provide coaching for the interview portion. If the DOL has to come to your office, I would suggest putting them in an office/conference room that is tucked away and don't feel obligated to provide all the answers/material that day if it wasn't specifically requested in writing ahead of time. Often they will ask for additional information during the onsite and I've told them it will take time to gather.

Also, regarding the three years of payroll information, I've provided summary spreadsheets with dates and dollar amounts on top of the actual data - they were very appreciative of the information. In fact one auditor accepted the summary in lieu of the mountain of paper.

[Madison71]

I would definitely try to get the audit interview scheduled off-site. Keep the answers short. They will ask open ended questions. Only answer what is asked. If your processes and procedures are tight, you should be ok. Good luck

[Kevin C]

DOL_deposit_reg.pdf

If the agent decides to pick nits over the timing of the deferral and loan payment deposits, this may be helpful. If you search for "monthly", some of the items are interesting. There is also a kind of mailbox rule in footnote 6 if you were mailing deposit checks.

[Guest lbz123]

Thanks for all of the comments and insight. Right now, we have sent some of what was requested and working on the rest. In fact, so buried in it, that's why I didn't notice some new comments on the board right away!

It looks like they won't budge about the onsite, but I'm hoping once they get all of our materials, maybe they will change their mind. They are targeting comng out late this month/early next month to be here, so I'm really scrambling to get all of this together.

Once this all ends, I'll post what happened in case it can help someone in a similar situation. Thanks again to everyone who has commented.