What Employers Should Expect During Compliance Reviews & Regulatory Reporting
Understand the key compliance areas, documentation requirements, and how Apex Wealth Partners helps businesses stay audit-ready year-round.
Compliance Without the Stress
Running a 401(k) plan means more than just helping employees save — it also means staying compliant with complex IRS and Department of Labor (DOL) rules.
From annual filings to nondiscrimination testing, even well-run plans can face challenges if they don’t understand what’s required.
This article explains what happens during a 401(k) compliance review, what documents you’ll need, and how joining a Pooled Employer Plan (PEP) with Apex Wealth Path simplifies reporting and minimizes risk.
Why Compliance Matters
401(k) plans are governed by ERISA (Employee Retirement Income Security Act), which sets strict standards for fiduciary conduct, fee transparency, and participant fairness.
Non-compliance can lead to:
- Costly penalties from the DOL or IRS
- Required plan corrections or amendments
- Loss of tax-qualified status
- Legal exposure for fiduciaries
In short: staying compliant protects both your business and your employees’ retirement savings.
Key Compliance Areas for 401(k) Plans
1. Nondiscrimination Testing
These annual tests ensure that highly compensated employees don’t receive disproportionately higher benefits.
Common tests include:
- ADP/ACP tests – check contribution fairness
- Top-Heavy test – ensures ownership doesn’t dominate plan assets
Failing these can require refunds or plan adjustments.
2. Form 5500 Filing
All qualified plans must file this annual report with the Department of Labor. It details plan assets, participation, and compliance status.
Standalone plans must prepare this themselves—or hire auditors if large enough.
3. Plan Document Reviews
Employers must maintain up-to-date plan documents that reflect the latest regulatory changes (e.g., SECURE 2.0 updates).
4. Fee & Investment Reviews
ERISA requires fiduciaries to ensure plan fees are reasonable and that investment options are prudently selected and monitored.
5. Participant Disclosures
Employers must provide timely updates to participants about fees, plan changes, and investment performance.
What to Expect During a Compliance Review
If your plan is audited or reviewed by regulators, expect requests for:
- Plan documents and amendments
- Payroll and contribution records
- Investment committee meeting minutes
- Fee disclosures and service provider agreements
- Prior Form 5500 filings
The review typically confirms that all ERISA and IRS requirements are being met and that fiduciary duties are being fulfilled.
How a PEP Simplifies Compliance
When you join a Pooled Employer Plan (PEP), the Pooled Plan Provider (PPP) — like Apex Wealth Path — handles most compliance responsibilities on your behalf:
- Conducts annual testing and filings
- Monitors service providers and fees
- Ensures plan documents remain current
- Manages required participant communications
- Oversees fiduciary oversight and audit preparation
Instead of juggling multiple vendors and deadlines, you have one point of contact managing the entire process.
How Apex Wealth Path Keeps You Compliant
At Apex, compliance isn’t an afterthought — it’s built into everything we do. We:
- Handle Form 5500 filings and audit coordination
- Automate nondiscrimination testing and reporting
- Keep you informed of new regulations that may affect your plan
- Provide transparent documentation for full peace of mind
Our goal is to keep your plan compliant, efficient, and worry-free.
Conclusion: Compliance Without the Stress
Regulatory compliance can be one of the most demanding aspects of managing a 401(k) — but it doesn’t have to be.
By joining a Pooled Employer Plan with Apex Wealth Path, you can offload much of the complexity, reduce risk, and focus on running your business.
Stephen Bellosi, AIF®, AWMA®
Managing Partner, Apex Consulting