Resources

Upcoming Compliance Deadlines

January 31^st   

• Many recordkeepers require participant data for average deferral percentage (ADP)/average contribution percentage (ACP), top-heavy and 402(g) compliance testing to be returned by this date.

• Deadline for sending Form 1099-R to participants who received distributions from a qualified retirement plan during the previous year.

February 14^th  

• Deadline for participant-directed defined contribution plans to provide participants with the quarterly benefit/disclosure statement and statement of plan fees and expenses charged to individual plan accounts during the last quarter of 2024. Due: 45 days after the end of the quarter.

February 28^th

• Deadline for filing Form 1099-R with the IRS, if not filed electronically, to report distributions made in the previous year.

March 17^th

• Deadline for distributing ADP/ACP refunds without incurring a 10% excise tax on the employer—i.e., due 2 1/2 months following the plan year-end. Note: A special deadline applies to plans satisfying the requirements of an eligible automatic contribution arrangement (EACA).

• Employer contributions due to the retirement plan’s trust for S corporations and partnerships with December 31 fiscal year-end in order to take deductions with no corporate tax extension.

• Forms 1042 and 1042-S due to the IRS to report, respectively, income tax withheld from distributions made to nonresident aliens and retirement plan distributions made to nonresident aliens.

• Deadline to apply to the IRS for a waiver of the minimum funding standard for defined benefit and money purchase pension plans—i.e., no later than the 15th day of the third month after the close of the plan year for which the waiver is requested.

March 31^st

• Electronic filings of Form 1099-R for 2024 distributions are due to the IRS.

Category

2025

2024

Elective Deferrals (401k & 403b plans)

$23,500

$23,000

Annual Benefit Limit

$280,000

$275,000

Annual Contribution Limit

$70,000

$69,000

Annual Compensation Limit

$350,000

$345,000

457(b) Deferral Limit

$23,500

$23,000

Highly Compensated Threshold

$160,000

$155,000

SIMPLE Contribution Limit

$16,500

$16,000

SEP Coverage Limit

$750

$750

SEP Compensation Limit

$350,000

$345,000

Income Subject to Social Security

$176,100

$168,600

Top-Heavy Plan Key Employee Compensation

$230,000

$220,000

Catch-Up Contributions

$7,500

$7,500

SIMPLE Catch-Up Contributions

$3,500

$3,500

Age 60-63 Catch-Up Contributions

$11,250

N/A

Age 60-63 SIMPLE Catch-Up Contributions

$5,250

N/A