401(k) plan audits in Chicago, IL
Chicago sponsors filed 7,884 401(k) plans for the 2024 plan year, the 2nd most of any US city and 25% of all 401(k) plans in Illinois. 898 of them started the year with 100 or more participants with an account balance, which means their Form 5500 needed an independent audit.
How many Chicago 401(k) plans need an audit?
898 of 7,884. 48% of those have fewer than 250 participants with a balance:
| Participants with a balance | Chicago plans |
|---|---|
| 100 to 249 | 435 |
| 250 to 499 | 168 |
| 500 to 999 | 112 |
| 1,000 or more | 183 |
Another 53 Chicago plans filed as small plans but ended 2024 with 100 or more participants with a balance, so their next filing is likely to need a first audit. Check your own plan’s filing, or read how the count works.
What do audited Chicago plans report?
26% of the 816 audited Chicago 401(k) plans that answered the question reported employee contributions reaching the plan late on Schedule H. Late deposits are one of the things an auditor tests; what else a first auditor looks at.
On fees: Illinois plans that paid their audit from plan assets reported a median of $17,500 in 2024, and half paid between $11,150 and $26,867, across 450 filings. Plans that pay from company funds report no fee, so this is the going rate among plans that pay from the plan. The full fee index.
Which Department of Labor office oversees Chicago plans?
The Employee Benefits Security Administration’s Chicago Regional Office lists Illinois among the states it serves: 230 S. Dearborn St., Suite 2160, Chicago, IL 60604, (312) 353-0900.
Can a CPA firm from outside Illinois audit your plan?
Yes. ERISA accepts an auditor licensed as a certified public accountant by any state, and most states let CPAs licensed elsewhere practice there under mobility rules. A CPA licensed in another state, whose principal place of business is outside Illinois, may practice in Illinois without an Illinois license or any notice to the state. For an audit of an entity headquartered in Illinois, an out-of-state firm practicing this way must meet Illinois's ownership rule (a majority of owners are CPAs) and its peer review requirement, and the audit must be done through individuals licensed in Illinois or holding practice privileges.
Source: 225 ILCS 450/5.2, 14.4 and 16. To check any CPA or firm, use the directory of state boards of accountancy.
Working with Ledgerline from Chicago
Ledgerline audits 401(k) and 403(b) plans and is booking engagements for the coming season, starting December 2026. The work runs through a secure portal, so your team, your TPA and your recordkeeper each upload only their own items. We have CPAs across the US, so if you would rather meet in person in Chicago, or need any part of the work done on site, we can do that.
Frequently asked questions
Does my Chicago 401(k) plan need an audit?
It does if it had 100 or more participants with an account balance on the first day of the plan year. For the 2024 plan year, 898 of the 7,884 401(k) plans sponsored from a Chicago address were over that line.
How much does a 401(k) audit cost in Illinois?
In 2024 Form 5500 filings, the median audit fee paid by Illinois plans from plan assets was $17,500, and half paid between $11,150 and $26,867. Many sponsors pay their auditor from company funds instead, and those fees do not appear in the filings.
Can a CPA firm from outside Illinois audit a Chicago 401(k) plan?
Yes, subject to Illinois's rules. A CPA licensed in another state, whose principal place of business is outside Illinois, may practice in Illinois without an Illinois license or any notice to the state. For an audit of an entity headquartered in Illinois, an out-of-state firm practicing this way must meet Illinois's ownership rule (a majority of owners are CPAs) and its peer review requirement, and the audit must be done through individuals licensed in Illinois or holding practice privileges.
See where your plan stands from its own filing, or book a short call to talk through what an audit would involve.
Other cities
- DOL: Form 5500 datasets, 2024 plan year (Form 5500, Form 5500-SF and Schedule H). 401(k) plans (feature code 2J) in the DOL's 2024 Form 5500 and 5500-SF datasets, one record per plan, grouped by the sponsor's mailing city as filed.
- DOL: Chicago Regional Office
- ERISA section 103(a)(3)(D), definition of qualified public accountant
- 225 ILCS 450/5.2, 14.4 and 16