Key 2023 Deadlines for 401(k) Plan Sponsors

Key 2023 Deadlines for 401(k) Plan Sponsors Nov 21, 2022 10:32:00 AM Birthdays, wedding anniversaries … and 401(k) plan compliance deadlines. Some dates are worth saving more than others. Offering a 401(k) plan has many benefits for both your company and your employees, but keeping your calendar clear of important dates isn’t one of them. Plan sponsors have several responsibilities throughout the year to keep their plan operating in compliance with federal regulations. We’ve summarized a few biggies for 2023—along with the remaining weeks of 2022—below to make your life a little easier. If a deadline falls on a weekend, it’s safest to submit the previous business day unless otherwise noted. Please also keep in mind there may be additional state regulations applicable to your plan not listed here. January February March April May June July August September October November December Remaining of 2022 January Friday, Jan. 13 Betterment at Work loads the prior year census template and compliance questionnaire to plan sponsors’ Compliance Hubs. Plan sponsors have until Tuesday, Jan. 31 to complete and submit both documents. Tuesday, Jan. 31 Betterment at Work makes IRS Forms 1099-R available to participants Send Form W-2 to your employees. Submit Form W-2 to the Social Security Administration. Submit the prior year census data and compliance questionnaire to Betterment at Work. Submit Annual Return of Withheld Federal Income Tax (Form 945) to the IRS. If you’ve made all your deposits on time and in full, then the due date is Friday, Feb. 10. February Wednesday, Feb. 1 Send Form 1099-NEC to both the IRS and your employees. Post the prior year’s OSHA Summary of Illness and Injuries in your workplace between February 1 and March 2. Tuesday, Feb. 28 For Applicable Large Employers (ALE) Submit paper Forms 1094-C and 1095-C to the IRS. If you intend to e-file your forms, then the deadline is Friday, March 31. For self-insured, non-ALE companies Submit paper Forms 1094-B and 1095-B to the IRS. If you intend to e-file your forms, then the deadline is Friday, March 31. Note: Form 1095-B must be filed electronically if the reporting entity is required to file 250 or more returns. March Wednesday, March 15 Make refunds to participants for failed ADP/ACP tests(s), if applicable. As the plan sponsor, you must approve corrective action by your 401(k) provider by this date. Failure to meet this deadline could result in a 10% tax penalty for plan sponsors. For S-Corps and LLCs taxed as Partnerships Employer contributions (e.g., profit sharing, match, Safe Harbor) are due for deductibility. For S-Corps and Partnerships Deadline to establish a traditional (non-Safe Harbor) plan for the prior tax year, unless the tax deadline has been extended. Thursday, March 30 For companies in Connecticut with 5+ employees Deadline to comply with Connecticut’s retirement plan mandate. Friday, March 31 File Form 1099s electronically with the IRS. For companies with 100+ employees Submit your EEO-1 report. April Saturday, April 1 Confirm initial Required Minimum Distributions (RMDs) were taken by participants who turned 72 before previous year-end, are retired/terminated, and have a balance. For companies in Maine with 25+ employees Deadline to comply with Maine’s retirement plan mandate. Tuesday, April 18 Tax Day For C-Corps, LLCs taxed as C-Corps, or sole proprietorships Employer contributions (e.g., profit sharing, match, Safe Harbor) are due for deductibility. For C-Corps and Sole Props Deadline to establish a traditional (non-Safe Harbor) plan for the prior tax year, unless the tax deadline has been extended. May Monday, May 1 File Form 941 (Employer’s Quarterly Federal Tax Return) with the IRS. Monday, May 15 For non-profit companies Tax returns due June N/A July Saturday, July 1 For companies in Virginia with 25+ employees Deadline to comply with Virginia’s retirement plan mandate. Monday, July 10 Mid-Year Benefits Review: Remind employees to take advantage of any eligible voluntary benefits. Saturday, July 29 If your plan was amended, this is the deadline to distribute Summary of Material Modifications (SMM) to participants. Sunday, July 30 For self-insured companies Submit the PCORI fee to the IRS. Monday, July 31 File Form 941 (Employer’s Quarterly Federal Tax Return) with the IRS. Electronically submit Form 5500 (and third-party audit, if applicable) OR request an extension (Form 5558). Betterment at Work prepares these forms on our plan sponsors’ behalf, with plan sponsors being responsible for filing them electronically. August Tuesday, Aug. 1 For *new* Betterment 401(k) plans Deadline to sign a services agreement with Betterment at Work in order to establish a new Safe Harbor 401(k) plan for 2024. Deferrals must be started by Sunday, Oct. 1. September Friday, Sept. 15 For S-Corps and Partnerships Deadline to establish a traditional (non-Safe Harbor) plan for the prior tax year if the tax deadline has been extended. Saturday, Sept. 30 Distribute Summary Annual Report (SAR) to your participants and beneficiaries. If a Form 5500 extension is filed, then the deadline to distribute is Friday, Dec. 15. October Sunday, Oct. 1 Deadline to establish a new Safe Harbor 401(k) plan. The plan must have deferrals for at least 3 months to be Safe Harbor for this plan year. For companies in Maine with 15-24 employees Deadline to comply with Maine’s retirement plan mandate. Sunday, Oct. 15 For C-Corps and Sole Props Deadline to establish a traditional (non-Safe Harbor) plan for the prior tax year if the tax deadline has been extended. For companies that offer prescription drug coverage to Medicare-eligible employees Notify Medicare-eligible enrollees of creditable coverage for prescription drugs. Monday, Oct. 16 Electronically submit Form 5500 (and third-party audit if applicable) if granted a Form 5558 extension. Betterment at Work prepares these forms on our plan sponsors’ behalf, with plan sponsors being responsible for filing them electronically. Tuesday, Oct. 31 File Form 941 (Employer’s Quarterly Federal Tax Return) with the IRS. November Wednesday, Nov. 1 For companies in Illinois with 5+ employees Deadline to comply with Illinois’ retirement plan mandate. Thursday, Nov. 2 If you’re adopting a new 401(k) plan for 2024, this is the deadline to notify SIMPLE IRA participants (if applicable) that their plan will terminate January 1. A company cannot sponsor a SIMPLE IRA and a 401(k) plan at the same time. December Friday, Dec. 1 Betterment at Work prepares 2024 Annual Notices (listed below) and sends relevant notices to our plan sponsors for distributing to participants. Plan sponsors to disseminate paper copies if required. Deadline for plan sponsors to distribute notices (if applicable) to participants for 2024 plan year: Safe Harbor notice Qualified Default Investment Alternative (QDIA) notice Automatic Enrollment notice Deadline to execute amendment to make a traditional plan a 3% Safe Harbor nonelective plan for the 2023 plan year. Deadline to execute amendment to make a traditional plan a Safe Harbor match plan for the 2024 plan year. Friday, Dec. 15 Distribute Summary Annual Report (SAR) to participants, if granted a Form 5558 extension. Sunday, Dec. 31 Post required workplace notices in conspicuous locations. Deadline to execute amendment to make a traditional plan a 4% Safe Harbor nonelective plan for the 2022 plan year. Deadline to make Safe Harbor and other employer contributions for 2022 plan year. Deadline for annual Required Minimum Distributions (RMDs). For companies that failed ADP/ACP compliance testing Deadline to distribute ADP/ACP refunds for the prior year; a 10% excise will apply. Deadline to fund a QNEC for plans that failed ADP/ACP compliance testing. Remaining 2022 Deadlines Thursday, Dec. 1, 2022 Betterment at Work prepares 2023 Annual Notices (listed below) and sends relevant notices to our plan sponsors for distributing to participants. Plan sponsors to disseminate paper copies if required. Deadline for plan sponsors to distribute notices (if applicable) to participants for 2024 plan year: Safe Harbor notice Qualified Default Investment Alternative (QDIA) notice Automatic Enrollment notice Deadline to execute amendment to make traditional plan a 3% safe harbor nonelective plan for the 2022 plan year. Deadline to execute amendment to make a traditional plan a safe harbor match plan for the 2023 plan year. Thursday, Dec. 15, 2022 Deadline to distribute Summary Annual Report (SAR) to participants, if granted a Form 5558 extension. Saturday, Dec. 31, 2022 Deadline to distribute ADP/ACP refunds for the prior year; a 10% excise will apply Deadline to fund a QNEC for plans that failed ADP/ACP compliance testing. Deadline to execute amendment to make traditional plan a 4% safe harbor nonelective plan for the 2021 plan year. Deadline to make safe harbor and other employer contributions for 2021 plan year. Deadline for Annual Required Minimum Distributions (RMDs).