2009 ERISA Compliance Calendar for DB/DC/403(b) Plans
Although many of these deadlines do not affect advisers directly, they certainly can have an impact on the smooth operation of a plan. More significantly, a missed deadline can mean real trouble for the plan sponsor and participants—and that certainly can mean trouble for you. On the pages that follow, you will find a check list for the year ahead, with key dates and deadlines that you can use to help keep your plan sponsor clients on track and on time.
Note: Plan amendments for provisions of the Pension Protection Act of 2006 should be effective retroactively and will not violate anti-cutback rules if made on or before the last day of the plan year beginning on or after January 1, 2009 (or 2011 for governmental plans).
January
Jan 1 / 403(b) plans must be operated in accordance with a reasonable interpretation of §403(b). Written plan document not required until 12/31/2009.
Jan 31 / Many recordkeepers require participant data for average deferral percentage (ADP)/average contribution percentage (ACP), Top Heavy, and 402(g) compliance testing to be returned by this date.
February
Feb 2/ Deadline for submitting individually designed plans in the third remedial amendment cycle to the IRS determination letter program (Cycle C for employers with employer identification numbers that end in 3 or 8 and most governmental plans). Note: The deadline is January 31; however, that date falls on Saturday in 2009.
Feb 2/ Form 1099Rs due to participants to report 2008 distributions. Note: The deadline is typically January 31; however, that date falls on Saturday in 2009.
March
Mar 2 / PBGC Form 1-ES Estimated Premium Payment (flat-rate premium for plans with >500 participants). Note: This is due by the last day of the second month in the premium payment year.
Mar 2 / Form 1099Rs for 2008 distributions due to IRS if not filed electronically. Note: The deadline is typically February 28, but that date is on Saturday in 2009.
Mar 16 / ADP/ACP corrective distributions of excess contributions and earnings due to participants. Note: These are usually due on March 15, which falls on Sunday in 2009.
Mar 16 / Forms 1042S and 1042 due to IRS to report retirement plan distributions made to nonresident aliens and income tax withheld from distributions made to nonresident aliens. Note: These are usually due on March 15, which falls on Sunday in 2009.
Mar 16 / 2008 Employer Profit Sharing and Match Contributions due for plans with 12/31 fiscal year-ends in order to take tax deduction (with no corporate tax extension). Note: These usually are due on March 15, which falls on Sunday in 2009.
Mar 16 / Application of Waiver for Minimum Funding Standard for defined benefit (DB) and money purchase pension plans (due no later than the 15th day of the third month after the close of the plan year for which the waiver is requested). Note: These usually are due on March 15, which falls on Sunday in 2009.
Mar 31 / Electronic filing of 1099Rs for 2008 distributions due to IRS.
April
Apr 1 / Initial age 70 1/2 Minimum Required Distributions due to no-longer-active participants who turned age 70 1/2 in 2008.*
Apr 1 / Initial age 70 1/2 Minimum Required Distributions due to active or no-longer-active participants in a qualified plan, 403(b) account, or 457 plan who own more than 5% of the organization sponsoring the plan.*
Apr 15 / 402(g) distributions of excess deferral amounts due to participants.
Apr 30 / Annual funding notice to participants, beneficiaries, and labor organizations representing participants from plan sponsors of single and multiemployer DB pension plans. Note: Small plans (covering fewer than 100 participants) must provide the notice by the filing due date of the plan’s IRS Form 5500. This notice takes the place of the summary annual report for a DB plan.
July
Jul 29 / Summary of Material Modifications due to participants (due no later than 210 days after the end of the plan year in which the plan change is adopted).
Jul 31 / Form 5330 to report excise taxes related to employee benefit plans due to IRS.
Jul 31 / Form 5500 due to IRS for plans with December 31 plan year-end (due seven months after plan year-end).
Jul 31 / Form 5558 Application for Extension of Time to File Certain Employee Plan Returns is due (used to apply for extension of time to file Forms 5500 or 5330).
September
Sep 15 / Required contribution for money purchase pension, target benefit, and DB plans (8 1/2 months after plan year-end) and 2008 employer profit-sharing and match contribution for those sponsors that filed a corporate tax extension.
Sep 30 / Summary Annual Report due to participants for plans with 12/31 year-end (due to participants nine months after plan year-end or two months after filing Form 5500).
Sep 30 / Notice to participants in underfunded DB plans for which the PBGC variable rate premium is due (no later than two months after deadline for Form 5500).
October
Oct 3 / 401(k) Plan Safe Harbor Notice (must be provided between October 3 and December 1). Note: Employers who want the ability to provide a qualified non-elective contribution (QNEC) 3% employer contribution must provide a 401(k) Plan Safe Harbor Contingent notice to eligible employees.
Oct 15 / PBGC Form-1 Annual Premium Payment (due by the 15th day of the ninth full month following the month in which the plan year began). Schedule A-Single Employer Plan Variable Rate Portion of Premium and PBGC Form 1-EZ for flat rate premiums also due.
Oct 15 / Form 5310-A to give notice of Qualified Separate Lines of Business due to IRS.
December
Dec 2 / Qualified Default Investment Alternative Notice provided annually to all participants who have been defaulted into a QDIA at least 30 days prior to the beginning of the plan year.
Dec 2 / Annual automatic enrollment notice (can be combined with QDIA notice).
Dec 31 / Age 70 1/2 Required Minimum Distributions due to participants who have begun receiving distributions.
Dec 31 / Annual DB plan statement or notice annually to participants of availability of the statement and how to request one.
Miscellaneous
/ Annual review of existing fidelity bonds for fiduciaries of retirement plans that hold employer securities and persons who handle funding or other property of such plans to ensure maximums met. Information must be provided to IRS/DoL upon request.
/ Defined contribution plan statements must be provided at least annually for participants who do not have the right to direct their investments and at least quarterly for participants who do have the right to direct their investments.
/ Qualified default investment alternative (QDIA) notice for plans that choose to use a QDIA must be provided to participants 30 days prior to initial investment.
/ Notice to participants of qualified automatic contribution arrangement or qualified eligible contribution arrangement and the ability to opt out must be provided to participants 30 days prior to eligibility and annually (for plans with immediate eligibility, notice can be given on or as soon as feasible after eligibility).
/ Notice of failure to meet minimum funding standards for DB or Money Purchase Pension Plan (MPP) (within 60 days of missed payment or denial of payment waiver).
/ Notice of funding waiver application for DB or MPP Plans (within 14 days before application).
/ Notice of suspension of benefits for DB plans (if plan suspends benefits for retirees who return to work or who keep working past retirement age, notice must be provided in the first calendar month or payroll period for which benefit payments are suspended).
/ Explanation of pre-retirement survivor annuity (due between first day of plan year in which participant reaches age 32 and last day of plan year in which participant reaches age 35; if participant is hired after age 35, due within one year of hire).
/ Explanation of joint and survivor annuity (between 90 and 30 days before annuity starting date).
/ DC plans that require investment in company stock must provide a notice of diversification rights at least 30 days prior to the date a participant is eligible to diversify investments. Notice must include explanation of the importance of diversification. Note: Under the Pension Protection Act of 2006, plans that did not provide for diversification of company stock investments previously must now give participants the option to diversify after three years of service.
Illustration by A. Richard Allen