Key 401(k) Compliance Dates
While many of these responsibilities are handled by Betterment, as a 401(k) plan sponsor it’s important that you are aware of important dates and deadlines associated with administering your plan.
| Date | Responsibility | Previous Plan Year | Current Plan Year |
|---|---|---|---|
| Jan 31 | Betterment | IRS Forms 1099-R available to participants. | |
| Feb 10 | Betterment | Annual Return of Withheld Federal Income Tax (Form 945) due. | |
| Mar 1 | Participant | Deadline for employees who participated in multiple plans to notify sponsors of excess deferrals (402(g) excess). | |
| Mar 15 | Betterment | Deadline for refunds to participants for failed ADP/ACP tests(s). Failure to meet this deadline could result in a 10% tax penalty for plan sponsors. | |
| Mar 15 | Plan Sponsor | Employer contributions (e.g., profit sharing, match, safe harbor) due for deductibility for incorporated entities.¹ Failure to meet this deadline could preclude plan sponsor from tax deductibility. | Deadline to establish plan for the prior tax year |
| Apr 1 | Plan Sponsor | Deadline to confirm that Initial Required Minimum Distributions (RMDs) were taken by participants who: turned 72 ² before previous year-end; are retired/terminated; and have a balance | |
| Apr 15 ³ | Plan Sponsor | Employer contributions (e.g., profit sharing, match, safe harbor) due for deductibility for LLCs, LLPs, sole proprietorships (unincorporated entities).¹ Failure to meet this deadline could preclude plan sponsors from tax deductibility. | |
| Apr 15 | Betterment | Deadline to complete corrective distributions for 402(g) excess deferrals. | |
| Jul 29 ⁴ | Plan Sponsor | Deadline to distribute Summary of Material Modifications (SMM) to participants (only if plan was amended). | |
| Jul 31 ³ | Betterment ⁴ | Deadline to electronically submit Form 5500 (and third-party audit if applicable) OR request an extension (Form 5558). | |
| Sep 30 | Plan Sponsor | Deadline to distribute Summary Annual Report (SAR) to participants and beneficiaries (unless Form 5500 extension filed; deadline to distribute will be December 15). | |
| Oct 1 | Plan Sponsor | Deadline to establish a new safe harbor match 401(k) plan. | |
| Oct 15 ³ | Plan Sponsor | Deadline to electronically submit Form 5500 and third-party audit, if applicable, if granted a Form 5558 extension. | |
| Dec 1 | Plan Sponsor (Notices prepared by Betterment) | Deadline to distribute supplemental safe harbor notice to participants for safe harbor (“maybe”) plans. ⁵ | |
| Dec 1 | Plan Sponsor (Notices prepared by Betterment) | If applicable, distribute to participants for next plan year: Safe harbor notice, Qualified default investment alternative (QDIA) notice, Automatic enrollment notice | |
| Dec 1 | Plan Sponsor (Amendment drafted by Betterment) | Deadline to execute amendment to make a traditional plan any type of safe harbor plan (match or nonelective). | Deadline to execute amendment to make a traditional plan a safe harbor match plan for following plan year |
| Dec 15 | Plan Sponsor (SAR prepared by Betterment) | Deadline to distribute Summary Annual Report (SAR) to participants, if granted a Form 5558 extension. | |
| Dec 31 | Plan Sponsor | Deadline to make safe harbor and other fixed employer contributions. | Deadline for Annual Required Minimum Distributions (RMDs). Art |
| Dec 31 | Plan Sponsor | Deadline to execute amendment to make traditional plan a 3% safe harbor nonelective plan for the current plan year |
¹ Assumes calendar tax year. Additionally, if your company files a tax extension, you have until the extension deadline to fund the contributions.
² This was increased from 70½ in 2019 and earlier years.
³ Or first business day thereafter.
⁴ 210 days after the year end of the effective amended date, which is July 28 in leap years.
⁵ Safe harbor “maybe” Plans (specified in the plan document) are able to adopt a safe harbor nonelective plan 30 days before the end of the plan year. Please review your plan document to confirm if the plan has adopted such a provision.