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Important Retirement Plan Deadlines

Important Retirement Plan Deadlines

September 3, 2021

It’s that time of year when deadlines abound. It’s also a great time to evaluate your retirement plan design and there is still time to make changes or even more importantly implement a new plan. Remember we are here to help! Take the opportunity to act now because they will be here before you know it!

  • November 1 – Deadline to send notices regarding ending a SIMPLE retirement plan.
  • December 1 – Deadline to provide notice for a safe harbor match feature for the 2022 plan year coming up.
  • December 31 – Deadline to implement a 4% safe harbor non-elective contribution for the previous plan year retroactively.
  • Business’s tax return due date 2021 – An employer now has until the due date of the business’s tax return, including extensions, to establish a profit sharing, defined benefit, or cash balance plan for the prior year. The tax filing deadline varies based on the employer’s business entity type.

Have questions on these deadlines or the best retirement plan options for your business? Contact Mike Young at 714.716.4060 or mike@my-EBP.com or fill this short form out.

Safe Harbor 401k plans-don’t miss the Opportunity-upcoming Safe Harbor 401(k) Deadline.

Safe Harbor 401k Plans-don’t miss the Opportunity-upcoming Safe Harbor 401(k) Deadline!

Benefits of a Safe Harbor 401(k) Plan

  • Relief from required ADP and ACP annual compliance testing
  • May allow for additional profit sharing or matching contributions
  • An Ideal Solution. Can be paired with a Cash Balance hybrid plan for an ideal solution for business owners looking to reduce tax liabilities with even larger tax deductible contributions and substantially accelerate retirement savings. Examples:
    • a 45-year old business owner could contribute $184,00 to his retirement plans.
    • a 55-year old professional could contribute $271,500 to her retirement plans.

To meet requirements, company contributions can be either a flat 3% non-elective contributions to eligible employees, or a matching contribution of up to 4% of pay.

Deadlines for Establishing a New Safe Harbor 401(k) Plan

The deadline to establish a new safe harbor plan for this calendar year is October 1. If a safe harbor matching contribution will be made, it is elected at this time. However, a safe harbor non-elective provision can be added as late as December 1 by adding a deferral feature by October 1.

Deadline for Existing 401(k) Plan Adding a 3% Safe Harbor Provision

Based on the recently passed SECURE Act, an existing 401(k) plan can add a safe harbor feature without advance notice! The deadline to amend your existing 401(k) plan to a safe harbor plan with a 3% non-elective contribution to all eligible employees is December 1.

If this deadline is missed, however, an existing 401(k) plan can amend until December 31 of the following calendar year if the employer makes a 4% non-elective contribution.

Interested in finding out more about these options including timely updates and valuable resources. Contact Mike Young at 714.716.4060 or fill out the quick form here.