ERISA consultants at the Retirement Learning Center Resource Desk regularly receive calls from financial advisors on a broad array of technical topics related to IRAs and qualified retirement plans. We bring Case of the Week to you to highlight the most relevant topics affecting your business. A recent call with an advisor in California is representative of a common inquiry involving December deadlines.
Highlights of Discussion
There are several IRA and retirement-plan related deadlines that occur in December as summarized next.
| December 1, 2017 | Deadline for calendar-year plans to provide plan participants with safe harbor, qualified default investment alternative (QDIA) and automatic enrollment notices. |
| December 15, 2017 | ERISA extended deadline for distributing the Summary Annual Report to plan participants (for plans that filed Form 5500 with an extension) |
| December 29, 2017* | Deadline for IRA owners and retirement plan participants to satisfying their second and subsequent years’ required minimum distributions for 2017 |
| Deadline for making qualified nonelective contributions or qualified matching contributions to correct failed actual deferral percentage (ADP) or actual contribution percentage (ACP) tests in the previous plan year for plans using the current-year testing method | |
| Deadline for removing an ADP or ACP excess contribution for the prior plan year with a 10% excess tax in order to avoid an IRS correction program | |
| Deadline to complete a 2017 Roth IRA conversion or designated Roth in-plan conversion | |
| Deadline to amend an existing 401(k) plan to a safe harbor design for 2018 | |
| Deadline to amend a 401(k) safe harbor plan to remove safe harbor status for 2018 | |
| Deadline to amend plan for discretionary changes implemented during the 2017 plan year |
*Generally, December 31st. However, December 31, 2017, falls on a Sunday.
Conclusion
December is a busy month for IRA and retirement-plan related deadlines. Have you marked your calendar?