The retirement plan world is full of deadlines. Some are plan-year based and some are fixed for all plans. All of them have to be taken seriously, but luckily some retirement plan deadlines can be extended.
Form 5500 filings are due 7 ½ months after the end of the plan year and can be extended to 9 ½ months after end of the plan year. The 5500 is filed electronically with the Department of Labor. The “end of the plan year” is the date described by the plan document or the last day the plan had any assets remaining.
401(k) and 403(b) plans must perform an annual Actual Deferral Percentage (ADP) and/or Actual Contribution Percentage (ACP) test. This must be completed before the end of the following plan year, but here’s the rub: if corrections are necessary, those corrections must be completed within 2 ½ months after the end of the plan year to avoid excise tax penalties. Make sure your TPA has your employee payroll (census) data shortly after the end of the plan year so corrections are made in time if necessary!
Contributions can be deposited any time during the plan year. These contributions are deductable on the plan sponsor’s business tax return if they are made during the plan year or any time up to the due date of the plan sponsor’s business tax return for that year. Even though you should put it on the calendar just like your other retirement plan deadlines, the deadline here is related to the corporate return, not the retirement plan.
Pension plans (defined benefit, cash balance, money purchase and target benefit plans) have mandatory contributions. The deadline for making mandatory contributions is 8 ½ months after the end of the plan year.
Top heavy minimum contributions are required if Key Employees (owners, officers and their family members) hold 60% or more of the plan assets in their accounts. Top heavy minimum contributions must also be deposited no later than 8 ½ months after the end of the plan year.
Form 5330 filings are required if there are excise taxes due for some reason or another. Forms 5330 have the same filing deadlines as the Form 5500. Here’s the rub with this deadline: the excise tax due with the filing is not eligible for extension!
Notices
Employees must be provided with notices periodically:
- Safe Harbor – 30-90 days before the beginning of the plan year for which the Safe Harbor provisions apply
- Automatic Enrollment – 30-90 days before the Automatic Enrollment provisions will apply
- Summary Plan Description – Within 90 days of meeting the plan’s eligibility provisions
- Amendment details (Summary of Material Modification) – Preferably on or before the date the amendment takes effect. Some amendments require 15 or 30 days’ advance notice.
Distributions to participants must be reported on a Form 1099R. Tax withholding processed for these distributions is reported on Form 945. These forms are all due on January 1 of the year following the payment to the participant.
Summary – Retirement plan deadlines are critically important to plan administration! Make sure you have the retirement plan deadlines that apply to your plan on your calendar so you don’t miss anything important. For more information about maintaining your retirement plan check out our complete guide to setting up and maintaining a company retirement plan.
