Who benefits from an audit of a 401(k) plan?

An audit of a 401(k) plan serves multiple stakeholders, making the chosen option correct. Participants benefit because audits help ensure that their contributions and benefits are being managed appropriately, in accordance with plan documents and regulations. This oversight provides participants with confidence that the plan is being administered fairly and in their best interest.

Regulatory authorities, such as the Department of Labor, benefit from audits as they rely on these evaluations to ensure compliance with regulations protecting participants’ rights and ensuring transparency within plan operations.

Both participants and regulatory bodies thus gain important insights from the audit process, facilitating better governance and accountability of retirement assets. The collaborative benefit to these groups underscores the importance of regular audits in maintaining a trustworthy and compliant 401(k) plan.