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EP Examination Process Guide - Section 2 - Compliance Monitoring Procedures - Encouragement of Compliance Procedures and Self-Examinations

Examination tips, audit techniques, check-ups, publications and other guidance useful in determining if your plan is in compliance with the Code and regulations.

Examinations Tips: Review this Employee Plans CPE chapter for the following examination tips:

  • Distributions
    Items to review when examining plan distributions.
  • Eligibility & Coverage
    Items to review when examining a plan for eligibility and coverage.
  • IRC Section 401(k)
    Items to review when examining an IRC section 401(k) plan.
  • IRC Section 415(c)
    Items to review when examining a plan for IRC section 415(c).
  • Joint & Survivor Annuity
    Items to review when conducting the joint and survivor annuity portion of the examination.
  • Value of Plan Assets
    Items to review when determining the value of plan assets.
  • Vesting
    Items to review when examining a plan for vesting.

Audit Techniques:

  • Audit Techniques
    Audit techniques for top heavy plans, prohibited transactions, plan terminations, ESOPs and S Corporations. Sampling techniques and workpaper development is also included.
  • Audit Techniques - Defined Benefit Plans
    Audit Techniques for defined benefit plans, including actuarial assumptions, deductible limits under IRC section 404, changes in benefit structure and full funding limitation.
  • Overview of Audit Steps - 401(k) Plans
    An overview of the audit steps for an IRC section 401(k) examination using automated workpapers, including compensation, distributions, Actual Deferral Percentage (ADP)/Actual Contribution Percentage (ACP) testing and limitations.

Publications:

  • Publication 571- Tax-Sheltered Annuity Plans (403(b) Plans)
    This publication can help you better understand the tax rules that apply to an IRC section 403(b) tax-sheltered annuity plan.

Other Guidance:

  • Leveraged & Non-Leveraged ESOPs
    Guidance pertaining to the examination of leveraged and non-leveraged ESOPs.
  • IRC Section 404 Deductibility Rules
    A review of the basic IRC section 404 deductibility rules.
  • IRC Section 72(p)
    A review of the IRC section 72(p) final regulations and their impact on participant loans. (Revenue Ruling 2002-62 provides guidance on what constitutes a series of substantially equal periodic payments from an individual account.)
  • Check-Up for Your Retirement Plan
    Three-step approach designed to help business owners properly operate their retirement plans.
  • SEPs and SARSEPs
    An overview of the applicable law, audit techniques and a review of issues uncovered during the examination of SEPs and SARSEPs.
  • Internal Revenue Manual (IRM) Section 4.72.13 (Part 1 and Part 2)
    This section of the IRM provides guidance for revenue agents on how to examine a plan described in IRC section 403. (These guidelines reflect changes to the Code made by the Economic Growth and Tax Relief Reconciliation Act of 2001 ("EGTRRA" ) and the technical corrections made thereto. For examinations of years beginning prior to January 1, 2002, please consult prior examination guidelines for enforcement of laws then in effect.)
Page Last Reviewed or Updated: 03-Jul-2014