SMART has significant experience auditing a variety of employee retirement and other benefit plans including: defined benefit, defined contribution (including 401(k), money purchase, and profit sharing plans), and other executive compensation plans. In some cases, the benefit plans are audited for mid-size companies to which we also provide financial statement audit and tax services. In many other cases, the plan sponsor is audited by a larger national firm, and SMART is engaged to audit the benefit plans and for consulting services.

New IRS rules regarding 403(b) tax-sheltered annuity plans (offered by schools, hospitals, churches, charities and certain other tax-exempt organizations) have changed significantly effective for plan years beginning on or after January 1, 2009. SMART’s experts are familiar with the new regulations and prepared to assist entities offering these plans with ensuring timely compliance. The specific changes involve:

• Every 403(b) plan must be maintained under and operated in accordance with a formal written    plan document. The IRS requires that a single plan be adopted for any program, even when    there are multiple investment providers.
• The Department of Labor (“DOL”) has amended its Form 5500 filing requirements for 403(b)    plans requiring extensive 5500 reporting and independent audits (similar to corporate 401(k)    plans).
• Large 403(b) plans (100 or more eligible participants) will now need an annual audit of    comparative plan financial statements.
• The new IRS rules impose due diligence and compliance criteria that require increased oversight    and administration by employers.

Planning ahead for these new developments will be crucial to ensure timely and accurate reporting. SMART encourages all entities offering these plans to commence planning now.