Quarterly Bulletin News

Tax Talk

In this issue of Tax Talk, we update you on important upcoming compliance deadlines for calendar-year defined contribution plans as well as the opportunity for catch-up contributions for older retirement plan participants.  

  Compliance Deadlines
  October 1  Beginning of the period to disseminate annual notices including the 401(k) safe harbor, automatic contribution arrangement (ACA), qualified automatic contribution arrangement (QACA) safe harbor, qualified default investment alternative (QDIA), and general plan information and expenses (404a-5 disclosures).  
  October 15  PBGC flat rate and variable rate annual premium filing and payment is due to the PBGC.   IRS deadline for filing Form 5500 after a plan files Form 5558 to request an extension.   Deadline for DB plans with a funding shortfall in 2020 to make the third quarter contribution for the 2021 plan year to their plan trust.   IRS deadline for filing the retroactive amendment to correct an Internal Revenue Code (IRC) Section 410(b) coverage or Section 401(a)(4) nondiscrimination failure.   Form 5310-A due to the IRS to give notice of the establishment of qualified separate lines of business.  
  November 14  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  Summary annual reports due to participants if the Form 5500 deadline was extended because of a corporate tax filing extension.  
    December 1      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 nonelective contributions, if the nonelective contribution is less than 4% of compensation.  
  December 15    Extended deadline for providing summary annual reports to participants if the Form 5500 deadline was extended because of filing Form 5558.  
  December 31    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.