Siân Killingsworth / 9 Mar 2022 / 401(k) Plan Information
Every month holds important deadlines for employers offering small business 401(k)s. Fortunately, plan administrators at Ubiquity are dedicated to helping you achieve maximum results for your retirement savings and remain in compliance with IRS guidelines. The following checklist will help you prepare for the road ahead, and you can also use our 401(k) compliance calendar to stay on top of any deadlines.
2022 401(k) Deadlines
January 1: Safe Harbor match begins.
If you opted for a Safe Harbor 401(k) plan for the year, you can begin matching funds now.
January 15: It’s census data time!
To aid with compliance tests, send your recordkeeper the name, birth date, date of hire, termination date (if applicable), hours worked, compensation, and contributions for every employee.
January 31: Send forms to distribution recipients.
Employers must send Form 1099-R to plan participants who received distributions last year.
February 15: Send Q4 participant statements.
All plan participants are entitled to receive regular statement updates to track plan balances.
February 28: File Form 1099-R with the IRS.
The IRS requires hardcopy Forms 1099-R by this deadline.
March 15: Process corrective distributions for failed tests.
If you failed last year’s ADP or ACP tests, this is the last day to refund portions of the plan balance back to highly compensated employees and/or make additional distributions to lower paid employees to bring the plan into compliance. Failure to meet this deadline results in a 10% penalty and requires employers to file Form 5330.
March 15: If you’re an S Corp or LLC Partnership, file your taxes.
Not only will you need to file your taxes by this day, but you will also need to deposit all employer contributions to receive a tax deduction for the year unless you have petitioned for a six-month extension.
March 31: File Form 1099-R electronically with the IRS.
Employers must report distributions for the 2021 calendar year by this date.
April 1: Initial RMDs are required for participants turning 72 on or after January 1, 2022.
The year participants turn 72, they must make a first withdrawal from their 401(k) by April 1, 2022. In subsequent years, they can wait until the end of the tax year to take a distribution.
April 15: 402(g) refunds are distributed.
Participants who over-contributed must receive 402(g) excess deferral refunds by this deadline. It can be especially common among people who contributed to more than one employer 401(k) plan in a given year. Failure to meet this deadline could result in a tax penalty for the employee and operational error issues for the plan.
Limits for 2021 were $19,500, plus $6,500 allowed for those age 50 and older. This year’s plan limit increased to $20,500.
April 15: If you’re a C-Corp, Sole Proprietorship, or LLC Corporation, file your taxes.
Unless you received an extension, you’ll need to file your taxes and deposit employer contributions by this date.
May 15: Send Q1 statements to participants.
Employers must send the first quarter of 2022’s statement balances to participants before this deadline.
June 30: Correct distributions for EACA plans.
If your plan contains an Eligible Automatic Contribution Arrangement (EACA) and you failed ADP or ACP tests, make corrective distributions by this date to avoid the 10% IRS penalty and Form 5330 filing.
July 31: Report financial updates to the IRS using Form 5500.
Plan providers typically file these forms on your behalf, but we’ll need a signature. To request an extension, fill out Form 5558 by this date.
July 31: Communicate updates on any terminated employees using File Form 8955-SSA.
Any plan participants who are separated from service – either due to termination or voluntary withdrawal – must be reported to the IRS, with benefits due at retirement age.
July 31: File Form 5330 related to an error from last year.
If you made a mistake in 2021, you can file Form 5330 up until this date.
NEW! July 31: Submit a cycle 3 plan document restatement.
Your plan provider will submit a fully updated plan document that is rewritten to reflect any recent changes in legislation. This restatement does not apply to individually designed plan documents, 403(b) plans, or government plans.
August 15: Send Q2 statements to participants.
Employers must notify all participants of the second-quarter statement balance.
September 1: Send Safe Harbor notices for new plans.
Employers must notify participants they’ve added a Safe Harbor provision, which will become effective October 1, 2022.
September 15: If you’re an S Corp or LLC Partnership with an extended tax deadline, file now.
Final employer contributions are due now if you’ve received the six-month tax extension. You’ll also be able to receive your tax deduction for last year’s taxes at this time.
September 30: Send the Summary Annual Report (SAR) to all plan participants.
Similar to Form 5500, the SAR provides a summary of the plan’s financial status. It is possible to file for a two-and-a-half month extension if you are filing a Form 5558 to extend your 5500 filing.
October 1: Review your RMDs.
Before the year’s end, you’ll want to review the list of participants who need to take distributions by December 31, 2022.
October 1: Add a Safe Harbor provision to your 401(k) plan or set up a new Safe Harbor 401(k).
A Safe Harbor is a great option if you’ve failed nondiscrimination testing in the past or if you’re concerned about potentially failing these tests. If participants are making elective deferrals you’ll be matching, you’ll need to let them know.
October 15: If you’re a C Corp, Sole Proprietorship, or Corporation LLC with a tax extension, file now.
You can now file your extended Form 5500, Form 8955-SSA if you were granted a Form 5558 extension. Make all employer contributions and you’ll receive a tax deduction for the 2021 tax year.
November 1: Plan ahead for required December 1 notices.
While not a hard deadline, it’s recommended that employers begin planning and let their plan administrators know if they’d like to change the type of safe harbor plan they have or if they’re planning to add a safe harbor provision for the following calendar year.
November 15: Send Q3 statements to participants.
Let plan participants know how their balance is doing in the third quarter.
December 1: Issue Safe Harbor plan notices.
Whether your Safe Harbor is old or new, you’ll have to send notice 30 to 90 days before the first of the year
December 15: If you received an extension, distribute the Summary Annual Report now.
If you received a Form 5558 extension, you’ll need to send the SAR to all eligible employees
December 31: Catch up on anything you may have missed.
The end of the calendar year is a day of reckoning for correcting failed ACP/ADP tests. If you want a plan in 2023, now is a great opportunity, as elective deferrals cannot be retroactive. Current year RMDs must go out. It’s your last chance to convert your 401(k) into a Safe Harbor.
Any other discretionary changes affecting the 2022 plan year must be signed. Fee disclosures required under 404(a)(5) must be distributed as well.
The 401(k) contribution deadlines for an employer’s plan sponsor can be confusing because the deadlines for your 401(k) plan’s 2022 year won’t arrive until well into 2023. This is great news, as the calendar allows for more time to make contributions and ensure compliance. Working with small business 401(k) provider Ubiquity, you can rest easy, knowing we’re tracking all these key dates for you and communicating well in advance so you can focus on the future.
Contact us to learn more about changing providers or setting up a new 401(k) plan for your small business. We offer easy set-up and affordable flat fees!