A clear framework for evaluating 401(k) and retirement plans during M&A. Learn the key compliance, fiduciary, and financial risks buyers must analyze.

Retirement plans are highly regulated and often poorly managed—creating significant exposure for buyers.

Here is the comprehensive checklist ACS uses in retirement due diligence:

1. Plan Compliance Review

We look for:

• Failed discrimination testing
• Late or missing Form 5500 filings
• Incorrect employer match contributions
• Operational errors
• Lack of fiduciary oversight

2. Financial Exposure Analysis

Buyers must evaluate:

• True-up obligations
• Unfunded match liabilities
• Vesting acceleration
• Contribution timing

3. Investment & Fee Benchmarking

We assess:

• Fund lineup quality
• Revenue sharing or hidden fees
• Benchmark comparisons
• Advisor oversight

4. Control Group & Integration Requirements

Post-close considerations:

• Whether plans must merge
• Safe harbor rules
• Testing implications
• Harmonization strategy

Deliverable: Retirement Plan Due Diligence Report

If you're buying a company, the 401(k) plan can be one of the biggest sources of hidden compliance and financial risk. Leverage our team to help you evaluate the risk.