As the year comes to a close, it’s crucial for employers and plan sponsors to ensure compliance with the Employee Retirement Income Security Act (ERISA). Meeting these regulations often feels complex and time-consuming, but the consequences of non-compliance make it an unavoidable obligation as failure to meet ERISA requirements leads to expensive penalties and legal consequences. However, you don’t have to sort through these responsibilities alone. Join us as we review the deadlines that apply over the next few months and how you can more easily manage your compliance for the rest of the quarter and beyond.
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ERISA Deadlines: October – December 2023
October 15th
This is the deadline for filing a retroactive amendment to correct an Internal Revenue Code Section 410(b) coverage or Section 401(a)(4) nondiscrimination failure.
October 16th
- The third 2023 minimum funding quarterly installment payment for Defined Benefit plans must be paid at this deadline if it had a funding shortfall in 2022. This is due 15 days after the last plan-year quarter-end
- A filing and payment of a Pension Benefit guaranty Corporation (PBGC) flat rate and variable rate annual premium is due to the PBGC
- The deadline for filing Form 5500 after requesting an extension through Form 5558
- The deadline for filing Form 5310-A with the IRS to provide notice of the establishment of qualified separate lines of business
November 15th
Summary annual reports are due to participants if the Form 5500 deadline was extended because of a corporate tax filing extension.
Ensure you meet all relevant ERISA deadlines to avoid any penalties or expensive fines.
December 1st
Final deadline to:
- Disseminate the 401(k) safe harbor annual notice to plan participants
- Provide participants with the QDIA annual required notice if they were defaulted into a QDIA no more than 30 days prior to the plan year start
- Provide participants with the annual automatic enrollment and default investment notices, which can be combined with the QDIA notice
- Elect safe harbor status for the current plan year with non-elective contributions if the contribution is less than 4% of compensation
December 15th
If the Form 5500 deadline was extended because of filing Form 5558, this is the extended deadline for providing summary annual reports.
December 31st
Required Minimum Distributions (RMDs) are due and it is the final deadline:
- For correcting a failed ADP/ACP test
- To adopt a discretionary amendment to the plan
- To elect safe harbor status for the prior plan year with a non-elective contribution of 4% or more of compensation.
How California Pensions’ Services Make Staying Compliant Easier:
As we approach the end of 2023, it is essential to prioritize ERISA compliance to protect your retirement plan and avoid potential penalties. California Pensions’ services simplifying the compliance process, providing expertise in plan administration, documentation, and filings.
Our experienced team assists in everything from reviewing and updating your plan document and summary plan description to ensuring your plan is in line with the latest regulations. We also provide comprehensive plan administration services, including internal audits, compliance testing, and participant account reconciliations, letting you focus on your core business while ensuring compliance with ERISA regulations. Additionally, we offer services to handle the distribution of the Summary Annual Report (SAR) and the preparation and filing of Form 5500. Our expertise in these areas ensures critical deadlines are met accurately and on time, reducing the risk of penalties and legal consequences.
Let us help you navigate the complex regulatory landscape and ensure the successful management of your retirement plan. Contact California Pensions today for a free consultation and discover how our services can streamline your plan compliance efforts and contribute to your employees’ secure retirement.
