Qualified 401(k) plans have many mandatory tasks that must be performed during the plan year. An important aspect of 401k plan management is making sure these are all completed timely. This is one of the reasons it is important to choose vendors that are experienced and have the infrastructure to not allow any of these duties to slip through the cracks. Below describes each necessary task in 401k plan management based upon a calendar year plan.
January
Send the Third-Party Administrator (TPA) a full year census from the preceding year. Also complete the Annual Information Request packet for the TPA, to be used in annual compliance work. January 31st is the deadline for issuing Form 1099Rs for the prior year.
February
Quarterly participant statements for prior quarter are due no later than 45 days after end of prior quarter.
March
Non-Safe Harbor plans have any ADP and/or ACP refunds, to affected Highly Compensated Employees processed by March 15th to avoid a 10% excise tax. March 15th is also the deadline for Partnerships, S-Corps and LLCs to contribute employer money unless they have extended their tax returns.
April
Have any 402(g) excesses refunded to affected participants by April 15th. Any delayed first year Required Minimum Distributions must be issued by April 1st. April 15th is also the deadline for C-Corps to contribute employer money unless they have extended their tax returns.
May
Quarterly participant statements for prior quarter are due no later than 45 days after end of prior quarter.
June
EACA plans have any ADP and/or ACP refunds, to affected Highly Compensated Employees processed by June 30th to avoid a 10% excise tax.
July
Either file the Form Series 5500 by July 31st or file the Form 5558 “Extension of Time to File” by July 31st. If plan was amended in prior year and no new SPD issued, Summary of Material Modifications is due by July 29 (210 days after last plan year-end). If required, Form 5330 is due July 31st , but may be extended by filing the Form 5558 “Extension of Time to File” by July 31st .
August
Quarterly participant statements for prior quarter are due no later than 45 days after end of prior quarter.
September
Deadline for Partnerships and S-Corps to file their tax returns is September 15th. This is also the deadline for S-Corps to make employer contributions for the prior year if they extended their tax returns. The Summary Annual Report (SAR) must be distributed to participants by September 30th for plans that did not extend their Form Series 5500 filing.
October
Deadline for C-Corps to file their tax returns is October 15th. This is also the deadline for C-Corps to make employer contributions for the prior year if they extended their tax returns. The deadline for filing the extended Form Series 5500 is October 15th.
November
Quarterly participant statements for prior quarter are due no later than 45 days after end of prior quarter.
December
Safe Harbor Match plans must distribute Safe Harbor notices by December 1st. The SAR must be distributed by December 15th for plans that extended their Form Series 5500 filing. This is also the deadline for Auto-Enrollment notices and QDIA notices. The deadline to process any ADP and/or ACP refunds is December 31st. Any Required Minimum Distributions must be issued by December 31st. Any discretionary amendments to plan document for the following plan year must be adopted by December 31st.
Annually
Plan Sponsors must provide a notice called a Participant Fee Disclosure or 404(a)(5) notice to participants. This should disclose any fees that will be paid by the plan including mutual fund expenses.
As a plan fiduciary, it is imperative to pick both a Third-Party Administrator and Recordkeeper that have proven results in timely taking care of all the above items, in order to keep your company’s 401(k) plan’s qualified status. If you should have any questions about how ML&R Wealth Management serves our corporate retirment plans in Austin, please contact us.
