The end of the year means upcoming due dates for many calendar-year qualified plans such as 401(k)s and 403(b)s. And if you are a NESA client, feel confident knowing that our office will always help when it comes to important IRS/DOL deadlines. Please note that the deadlines mentioned in this article are for plan year end Dec. 31, and if you have an off-calendar year end plan, the deadlines will vary. Let’s dive right in.
Summary annual report (SAR)
Extended Deadline – Due: Dec. 15
Did your calendar-year plan extend its Form 5500 filing deadline to October 15? If so, then December 15 is the extended deadline for distributing the SAR to participants. Here at NESA, we prepare and send the SAR to our clients after we file the Form 5500 with the IRS on our client’s behalf. Need help mailing it to plan participants? We help with that, too!
Required minimum distributions (RMDs)
Due: December 31
There are two important deadlines when it comes to RMDs: April 1 and December 31. The April 1 deadline only applies to the RMD for the first year. All subsequent RMDs must be made by December 31.
Notices and disclosures
Due: Varies depending on plan year end
Annual required notices and disclosures will soon be due for defined contribution plans with a calendar-year plan. Such notices and disclosures may include participant fee disclosure document, safe harbor notice, automatic enrollment notice, qualified default investment alternative (QDIA) notice, and/or universal availability notice, to name a few. Generally, annual notices must be provided at least 30 days before the start of each plan year.
Plan forfeitures accounts
Due: Depends on the plan document
If your plan maintains a forfeiture account, ensure that all forfeitures for a plan year are promptly used according to plan terms. The general rule is that assets in a plan’s forfeiture account should be used or allocated in the plan year incurred. Forfeitures can arise when employer. Forfeitures are plan assets generally derived from non-vested employer contributions that are forfeited from a participant’s account when that participant terminates employment and is not fully vested.
Final words
Much is going on with a 401(k) or 403(b) plan in a 12-month period such as Form 5500 filling, CPA audit (generally required for plans with more than 100 participants), and as mentioned notices delivery, among others. There is no reason to feel overwhelmed by your retirement plan’s annual administration responsibilities. They are easy to manage with the help of a qualified retirement plan specialist firm that is proactive and service oriented. At NESA, we help our clients fulfill annual required notices, prepare and file Form 5500 with the IRS, provide CPA audit assistance and ongoing consultation. We do this in collaboration with investment advisors, CPAs, ERISA attorneys and other professionals making the process seamless for our clients.
This is for educational purposes only. The information provided here is intended to help you understand the general issue and does not constitute any tax, investment or legal advice. Consult your financial, tax or legal advisor regarding your own unique situation and your company’s benefits representative for rules specific to your plan.
About the Author
A 15-year veteran in all aspects of workplace retirement plan benefits program, Mizan J. Rahman is on a mission to help hard-working Americans enjoy a meaningful financial future. He specializes in the compliance, administration, design, and legal documentation of 401(k), 403(b), and 457(b) plans. Mizan provides high-level, personalized consulting to small businesses and not-for-profit organizations. One of the select few to have been awarded Enrolled Retirement Plan Agent (“ERPA”) by the Internal Revenue Service, Mizan regularly represents clients in front of DOL and IRS during audits.
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