Tax Talk: Defined Contribution Plan Compliance Deadlines

Posted on in category News Update

In this issue of Tax Talk, ABG Southwest advisors are updating you on upcoming IRS compliance deadlines for calendar-year defined contribution plans as well as the opportunity for catch-up contributions for older retirement plan participants.  

Upcoming Compliance Deadlines

November 14, 2021

  • Deadline for participant-directed DC plans to provide participants with quarterly benefit/disclosure statement and statement of plan fees and expenses actually charged to individual plan accounts during third quarter of 2021.

November 15, 2021

  • Summary annual reports due to participants if the Form 5500 deadline was extended because of a corporate tax filing extension.

December 1, 2021

  • Final deadline to disseminate the 401(k) safe harbor annual notice to plan participants, if required.
  • Final deadline for supplying the QDIA annual required notice to participants who were defaulted into a QDIA no more than 30 days prior to the beginning of the plan year.
  • Final deadline to provide participants with the annual automatic enrollment and default investment notices.
  • Deadline to elect safe harbor status for the current plan year with non-elective contributions, if the non-elective contribution is less than 4% of compensation.

December 15, 2021

  • Extended deadline for providing summary annual reports to participants if the Form 5500 deadline was extended because of filing Form 5558.

December 31, 2021

  • 2021 RMDs are due for all qualified plans, regardless of the plan year.
  • Deadline for correcting a failed ADP/ACP test from the prior plan year end.
  • Deadline to adopt discretionary amendments to the plan, subject to certain exceptions—e.g., anti-cutbacks.
  • Deadline for a safe harbor plan with a match to remove its safe harbor status for the following year or for an existing DC plan to convert to a safe harbor plan.
  • Deadline to elect safe harbor status for the prior plan year with a nonelective contribution of 4% or more of compensation.

Catch-Up Contributions

Now may be the time for participants who are age 50 or over by the end of this calendar year (2021) to think about making catch-up contributions to their qualified retirement plans. Annual catch-up contributions of up to $6,500 in 2021 (on top of the $19,500 annual contribution limit) may be permitted by 401(k) and 403 (b) plans. These catch-up contributions must be made before the end of the plan year and may be made as a lump sum or spread out through the remainder of the year. For older employees with retirement on the horizon, catch-up contributions may help them get one step closer to a more comfortable retirement.

We Welcome Your Questions

As 2021 draws to a close, ABG Southwest advisors will be standing by to support you and your employees in meeting these important tax compliance deadlines. Please contact your ABG Southwest primary relationship manager at any time for additional information. Or, contact us!