Case of the Week: December 2017 Deadlines

The ERISA consultants at the Retirement Learning Center Resource regularly receive calls from financial advisors on a broad array of technical topics related to IRAs, qualified retirement plans and executive compensation arrangements.

A recent call with a financial advisor in California is representative of a question we commonly receive related to December deadlines. The advisor asked:

“Do you have a list of IRA and retirement plan-related deadlines that occur in December?”

Summary of Discussion

There are several retirement-plan related deadlines that occur in December:

Dec. 1, 2017
Deadline for calendar-year plans to provide plan participants with safe harbor, qualified default investment alternative (QDIA) and automatic enrollment notices.

Dec. 15, 2017
ERISA extended deadline for distributing the Summary Annual Report to plan participants (for plans that filed Form 5500 with an extension).

Dec. 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, Dec. 31. However, Dec. 31, 2017, falls on a Sunday.

Conclusion

December is a busy month for IRA and retirement-plan related deadlines. Have you marked your calendar?

APEX 2017_winner 125x130 “Case of the Week” is the winner of an APEX Award for Publication Excellence for 2017.

Any information provided is for informational purposes only. It cannot be used for the purposes of avoiding penalties and taxes. Consumers should consult with their tax advisor or attorney regarding their specific situation.

©2017, Retirement Learning Center, LLC. Used with permission.

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