You think your 401(k) is fine.
The buyer thinks it’s fine.
The due diligence team starts digging…
Surprise — errors going back years pop up.
Why?
Because payroll systems and 401(k) systems speak different languages — and no one’s translating.
True story:
- 2018: John saves 3% (using payroll system deduction code 401)
- 2021: New payroll clerk creates a new deduction code 40P but never moves John’s setting
- 2025: Integration turns on set to change deduction code 40P and John request to save 4% moving forward
- System deducts BOTH 3% (earnings code 401 which was never changed) + 4% (earnings code 40P) = 7%
- Payroll says: “Looks fine.”
- Recordkeeper says: “We sent the right request.”
- Seller: “Uh-oh.”
These errors lurk under the surface until they show up in:
- Buyer’s due diligence
- CPA audits
- IRS/DOL inquiries
The fix: Fiduciary Outsourcing, LLC
They speak both payroll and recordkeeping fluently, find the root cause fast, and resolve issues before they derail deals.
Selling? Check your 401(k) now — not when a buyer finds the problem.
sue.perry@316fiduciaries.com
602-344-9765