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Compliance Update – Don’t Miss These Important Plan Sponsor Deadlines

Compliance Update: Don't Miss These Important Plan Sponsor Deadlines

Compliance Update – Don’t Miss These Important Plan Sponsor Deadlines. We know, we know — the end of the year is hectic. But it’s also an important time for plan sponsors to make sure they have all their administrative ducks in a row. Missing certain compliance deadlines could result in severe consequences for the plan and its fiduciaries.

Here are some deadlines to be aware of as 2017 draws to a close, and a few others to help you get a jump start on planning for 2018.

Year-End Deadlines:

December 15th: If you extended the deadline to file your plan’s Form 5500 to October 15th, December 15th is the last date you can distribute your Summary Annual Report (SAR) to participants.

December 31st:

  • This is the last day you can make corrective distributions for failed Annual Deferral Percentage (ADP)/Annual Contribution Percentage (ACP) tests from the previous plan year (i.e., 2016). Keep in mind, those corrections come with a 10% excise tax, too, courtesy of the IRS.
  • It’s also the final day to amend your plan for any changes implemented in 2017.
  • Make sure you make any Required Minimum Distributions (RMDs) for eligible participants (those who turned 70 1/2 in a prior plan year).

Hopefully, you’re way ahead of these deadlines and you’ve already provided the necessary information to your provider or completed the appropriate paperwork yourself. If not, there’s no time like the present. When it comes to fulfilling your administrative duties, sooner is always better than later.

Speaking of which, for proactive plan sponsors looking to get a head start on the coming year, here are a few deadlines coming up in January 2018.

Beginning-of-Year Deadlines:

January 31st:

  • Make sure you send out a Form 1099-R by this date for participants who received distributions from the plan during 2017.
  • It’s also the deadline to report any income tax withheld in 2017 to the IRS by filing Form 945.

If you’re like most people, you’ve probably got a lot on your mind right now (including holiday shopping and festivities), but December and January come with some important compliance deadlines for sponsors, especially for calendar-year plans. Consult your calendar and make sure you check these important administrative tasks off your list (and maybe check it twice). Once they’re out of the way, you can relax and enjoy the season!

Robyn Kurdek

Robyn Kurdek

Freelance writer with nearly 2 decades of financial industry experience, with niche expertise in the defined contribution (DC) industry. I also have defined benefit (DB) plan knowledge. I write all types of content for retirement plan participants, sponsors and advisors, including web copy, newsletters, white papers, fact sheets, blog posts, financial wellness articles, and more. "I speak DC."
Robyn Kurdek
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