Posted on May 12, 2022 in

Retirement Compliance Check

Now that tax season is over, this is usually the time employers and CPAs alike are making decisions with respect to retirement plans. This is the time that employers are looking to maximize tax savings by implementing an employer-sponsored retirement plan. And, while the benefits of implementing a plan are significant for not only the owners but also the staff, it is equally important to know the deadlines associated with retirement plans to stay compliant.

This 401(k) Compliance calendar highlights important dates to remember for plan sponsors between now and year-end. All the dates listed are important to take note of, but typically, year-end tax planning brings to light the importance of putting a retirement plan in place.

September 15th 

If an extension was filed in July, September 15th is the deadline to fund employer contributions for Partnerships and S-Corporations. This is also the minimum funding deadline for single and multiemployer defined benefit plans and the last date to make prior-year contributions for defined benefit pension plans.

October 1st

Annual notices to 401(k) participants must be given no earlier than October 1st and no later than December 1st, including the 401(k) Plan Safe Harbor Match Notice, Automatic Contribution Arrangement Safe Harbor, Automatic Enrollment, and qualified default investment alternative.

Annual notices to 401(k) participants must be given no earlier than October 1st and no later than December 1st, including the 401(k) Plan Safe Harbor Match Notice, Automatic Contribution Arrangement Safe Harbor, Automatic Enrollment, and qualified default investment alternative.

December 31st

Today is the final deadline to process corrective distributions for any plans that did not pass ADP/ACP testing. Amendments to change a traditional 401(k) to Safe Harbor design, remove a Safe Harbor feature or change certain discretionary modifications must be completed by today. Plan sponsors must amend plan documents for any discretionary changes made during the year by this date and Ongoing RMDs for 5 percent business owners and terminated participants must be completed.

Since 401(k) plans are subject to many legal compliance requirements, it’s important to review 401(k) plan requirements no less frequently than annually and to comply with such rules. Failure to do so can result in penalties and costs to your business. When choosing who to work with as your plan provider its important you choose a company that will act as a fiduciary. A fiduciary that will ensure your plan is periodically reviewed so you stay compliant and avoid any unnecessary liabilities.

Free Calendar Download: 401k Compliance Calendar – CPSIA

Tamara L Jemison
Retirement Plan Advisor