The number of participants in our plan is increasing, and will be above 100 in 2012. Will we still qualify for a small plan audit waiver?

The DOL has the "80/120" rule for plans that hover around the 100 participant mark. The rule allows a former small plan (less than 100 particpants) that has reached the 100 participant level to elect to defer the audit requirement until the number of participants exeeds 120. Once the number of participants exceeds 120 at the end of a plan year, the plan will be required to have an audit for the next plan year end. The 80/120 rule is designed to simplify a plan's reporting where an audit is required one year and not the next as annual particpant counts move up and down from the 100 particpant mark.