When it comes to managing a 401(k) or 403(b) retirement plan, few tasks are as crucial—or as misunderstood—as the annual audit. But don’t worry, you’re not alone. Whether you’re a business or nonprofit, understanding what to look for in a retirement plan auditor can save you time, money, and a lot of unnecessary stress.

Here’s how to make the right choice—and how working with a partner like NESA makes the process even easier.

First, Why Do Retirement Plans Need an Audit?

If your organization has 100 or more eligible participants in your 401(k) or 403(b) plan, the IRS and Department of Labor require an annual independent audit. This isn’t just a formality—it’s about ensuring compliance, protecting employees, and maintaining the integrity of the plan.

But here’s the thing: not all audits (or auditors) are created equal.

Best Practices for Hiring the Right Auditor

1. Look for Experience That Matches Your Organization Type

If your retirement plan is a 403(b), chances are you’re a nonprofit, hospital, school, or religious organization. Your auditor should understand that world.

Nonprofit accounting rules, donor-restricted funds, and unique organizational structures require a level of nuance that not every CPA firm has. Make sure you’re not their first rodeo with 403(b) audits.

Likewise, if you’re sponsoring a 401(k) plan in a corporate setting, your auditor should be fluent in for-profit plan operations and reporting.

Pro Tip: Ask if they’ve worked with organizations of your size, industry, and retirement plan type before. Specific experience matters.

2. Verify They’re Qualified—and Independent

The CPA you choose must be independent and qualified to perform retirement plan audits under ERISA. Look for firms that are members of the AICPA’s Employee Benefit Plan Audit Quality Center. This designation signals a deeper commitment to audit quality and training.

3. Make Collaboration a Priority

Your auditor should be someone who communicates clearly, stays organized, and respects your team’s time. But that collaboration shouldn’t fall solely on your HR or finance staff.

That’s where NESA comes in.

How NESA Makes Retirement Plan Audits Easier

At NESA, we don’t just administer retirement plans—we serve as a bridge between the employer and the auditor. Because we speak the same technical language, we’re able to work directly with the auditor on your behalf, making the process smoother, faster, and less burdensome for your internal team.

Here’s what that looks like:

• We gather and organize plan data so the auditor doesn’t have to chase your team for it.
• We explain plan features and compliance testing in plain terms, so nothing gets lost in translation.
• We stay ahead of deadlines and questions so your audit stays on track.

The result? Fewer hours spent by your HR and finance team, fewer back-and-forth emails, and a more efficient, accurate audit.

And if you’re not sure where to begin with selecting an auditor, NESA works with many respected CPA firms across the country and would be happy to provide referrals based on your organization’s size and needs.

Final Thoughts: Don’t Treat It Like a Box to Check

An audit may be required, but it’s also an opportunity to catch errors, improve processes, and build trust in your retirement plan. Choosing the right auditor—and the right partner to help manage the process—makes all the difference.

If you’d like to learn more about how NESA supports businesses and nonprofits through the audit process, we’d love to talk.

Let’s make retirement plan audits less stressful—and a whole lot more seamless.