Although there is no way to escape the random selection of an audit, Doeren Mayhew suggests limiting your chances of being chosen by avoiding the top 10 plan audit triggers:

  1. Late or inconsistent payment of employee deferrals
  2. Errors in calculating employee and profit-sharing contributions
  3. Complex definition of plan compensation
  4. Inclusion of “hard to value” assets
  5. Oversights on plan’s eligibility requirements
  6. Using “Other” category on Form 5500
  7. Regular significant distributions
  8. Misinterpretation of the vesting period
  9. Participant complaints
  10. Fewer than 500 employees

Find out other ways to avoid a IRS or DOL plan audit by contacting our employee benefit plan auditors in Michigan and Houston today.