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15 November

Tax Talk - Fall 2023

November 15, 2023 By Nick Stucko Education, Newsletter  

In this issue of Tax Talk, Spectrum updates you on important compliance deadlines coming up for defined contribution plans and provides a quick reminder about amending your plan document for any discretionary changes implemented during the year. The calendar below assumes that a plan is being administered on a calendar year basis.

Upcoming Compliance Deadlines

October 15th 

  • IRS deadline for filing the retroactive amendment to correct an Internal Revenue Code Section 410(b) coverage or Section 401(a)(4) nondiscrimination failure.

October 16th

  • Deadline for filing Form 5500 after a plan files Form 5558 to request an extension.

November14th
  • Deadline for participant-directed DC plans to provide participants with quarterly benefit/disclosure statement and statement of plan fees and expenses actually charged to individual plan accounts during third quarter of 2023. Note: Due 45 days after the end of the quarter.

November 15th
  • Summary annual reports due to participants if the Form 5500 deadline was extended because of a corporate tax filing extension.

December 1st

  • Final deadline to disseminate the 401(k) safe harbor annual notice to plan participants.

  • Final deadline for supplying the QDIA annual required notice to all participants who were defaulted into a QDIA no more than 30 days prior to the beginning of the plan year.

  • Final deadline to provide participants with the annual automatic enrollment and default investment notices; these may be combined with the QDIA notice.

  • Deadline to elect safe harbor status for the current plan year with non-elective contributions if the non-elective contribution is less than 4% of compensation.

December 15th

  • Extended deadline for providing summary annual reports to participants if the Form 5500 deadline was extended because of filing Form 5558.

December 31st

  • 2023 RMDs are due.

  • Deadline for correcting a failed ADP/ACP test.

  • Deadline to adopt discretionary amendments to the plan, subject to certain exceptions—e.g., anti-cutbacks.
  • Deadline for a safe harbor plan to remove its safe harbor status for the following year or for an existing DC plan to convert to a safe harbor plan.

  • Deadline to elect safe harbor status for the prior plan year with a nonelective contribution of 4% or more of compensation.

Note: December 31 falls on a Sunday in 2023 so plan sponsors should plan accordingly.

Plan Design Changes

Enhancing the features in a retirement plan can be beneficial for participants and employers. If a plan sponsor makes a plan design change during the year, the written plan document must be amended to reflect the plan design change by the last day of the plan year (e.g., December 31, 2023 for calendar year plans).

An earlier deadline applies to plan sponsors who adopt a 401(k) safe harbor plan design, using a 3% nonelective contribution. The safe harbor plan provisions must be adopted by December 1, 2023, so that disclosures can be provided to participants at least 30 days before the end of the plan year.

We Are Here to Help

As always, Spectrum is here to support you and your employees. Please contact your Spectrum representative for additional information or assistance in meeting some of these important deadlines or if you have any questions about making amendments to your plan.

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ERISA Workplace Retirement Plan Limits

The federal government annually publishes updated qualified retirement plan limits, which impact the contributions, benefit accruals, and compliance of ERISA covered qualified retirement plans. The below tables summarize the most significant changes in recent history.

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