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ERIC Number: EJ1015594
Record Type: Journal
Publication Date: 2013-Feb
Pages: 2
Abstractor: ERIC
ISSN: ISSN-0036-651X
Making a 403(b) Checklist--and Checking It Twice
Blinn, Linda Segal
School Business Affairs, v79 n2 p22-23 Feb 2013
The prospect of an IRS 403(b) audit can be daunting, but as the old saying goes, knowing is half the battle. Understanding what to expect during the audit process and having the proper internal controls are the keys to avoiding stress. As part of a traditional IRS 403(b) plan audit, the Internal Revenue Service has requested that plan sponsors produce such documentation as the 403(b) plan document; a list of participants taking a loan, hardship, or other distribution; and sample enrollment materials. However, the IRS has indicated that auditors are adding to this checklist. They will also look to verify that the terms of the plan match how the plan is in fact being administered. Any discrepancies could highlight defects within the plan's written document or in the day-to-day plan administration. In short, an IRS auditor will explore whether the employer has established "internal controls"--procedures designed to demonstrate a commitment to compliance and to minimizing errors. This article describes the internal controls that will be requested during a 403(b) plan audit and what else to expect. The bottom line is the ability to anticipate the lines of inquiry in advance of an IRS audit is the best preparation you can make. People should make their own list of internal controls and check it twice to determine whether they can produce documentation for each internal control mentioned herein.
Association of School Business Officials International (ASBO). 11401 North Shore Drive, Reston, VA 20190. Tel: 866-682-2729; Fax: 703-478-0205; e-mail:; Web site:
Publication Type: Journal Articles; Reports - Descriptive
Education Level: N/A
Audience: N/A
Language: English
Sponsor: N/A
Authoring Institution: N/A
Grant or Contract Numbers: N/A