Alternative Assets in Retirement Plans: Audit Readiness
What to collect, when to collect it, and how to keep year‑end reporting moving.
What counts as alternative/off‑platform?
Investments that don’t produce standard electronic statements from the recordkeeper/custodian. Common examples include real estate, private placements, promissory notes, certain precious metals, and artwork.
Documentation you’ll need
Year‑end statements or accountings from the issuer/manager/custodian.
Independent valuation/appraisal where appropriate, plus engagement letters if used.
Supporting documents: subscription agreements, K‑1s, operating agreements, property tax bills, or similar.
Evidence of ownership, fees, and cash flows (capital calls/distributions) with bank proof.
Timing & dependencies
Alert us early—some valuations take time. We can’t complete year‑end reporting without statements and valuations. If you’re a large plan, auditors will request detailed support—organize a folder per asset.
Roles & responsibilities
| Role | Primary responsibilities |
|---|---|
| Sponsor | Gather statements/valuations; provide authorizations to share information as needed. |
| TPA | Identify reporting needs; provide templates and request lists; incorporate valuations into filings. |
| Issuer/Manager/Valuation | Provide statements and independent valuations with methodology. |
| Custodian | Coordinate tax reporting support for distributions/transactions. |
| Auditor (if applicable) | Test evidence and review valuation support. |
Audit‑ready checklist
Create a folder per asset: YYYY‑AssetName‑Type.
Include year‑end and prior‑year statements for comparison.
Attach independent valuation/appraisal (if applicable) and methodology.
Provide cash flow detail (capital calls, distributions) with bank proof.
Add contacts for issuer/manager and any valuation firm.
Common pitfalls to avoid
Waiting until filing time to request valuations—delays everything.
Missing documentation for fees or asset‑level expenses.
Not informing us about holdings outside the recordkeeper platform.