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Category: 401(k) Plan Information

Get the most up to date 401(k) Plan Information from Ubiquity Retirement & Savings. Find the most recent rules and regulations, made easy to understand, along with tips and advice from our team of 401(k) planning experts. Free consultation- call Ubiquity today at 855.466.5825.

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!

An online 401(k) offers small businesses many advantages, including payroll integration, lower plan sponsor costs, lower employee costs, and easier employee onboarding. Your small business and employees may both benefit by switching from your traditional 401(k) to a more flexible 401(k) offered by an online provider like Ubiquity. Continue reading to learn about all the benefits of a technology-driven retirement plan for your company.

Online 401(k) Provider Benefits from an Employer Perspective

If you’ve considered switching out of a traditional 401(k), here are a few compelling reasons to go online:

Payroll integration: Traditional 401(k)s rely upon a person within the company to manually manage important aspects of the plan. This work can be tedious, time-consuming, and fraught with errors. The 401(k) business process is highly regulated by the Department of Labor and the IRS, so mistakes are not only a pain to fix, but they are also expensive.

Manual headaches cited by HR professionals when running payroll include:

  • Uploading files to the 401(k) recordkeeping system
  • Calculating new employee eligibility
  • Adding new employees to the defined contribution plan (which is a big issue for fast-growing programs)
  • Updating 401(k) deferral rates each time employees make a change
  • Calculating employee matches, vesting, etc.

By contrast, you can work with an online 401(k) provider with the capability of sharing data with your cloud-based payroll system. Someone in your company can still oversee the critical aspects of your plan, but your payroll and HR teams no longer need to cope with all of the manual tasks.

Low fees: The retirement industry is notorious for excessive fees — especially when it comes to plans from legacy financial institutions. Traditional 401(k) programs were written for huge corporations and are priced accordingly. Today, online providers such as Ubiquity focus exclusively on smaller businesses and offer low-cost plans with transparent fee structures.

Fiduciary coverage: By law, a 401(k) fiduciary ensures that all employees have access to a well-managed defined contribution plan. Large companies source 401(k) management to HR and benefits professionals, but most small businesses don’t have that sort of luxury. Often, the fiduciary responsibilities are added to the business owner, CFO, or HR head’s already-full plate. As an online 401(k) provider, Ubiquity offers 401(k) products that come with fiduciary coverage.

Let your provider absorb that responsibility, place your full focus on growing your business.

Online 401(k) Provider Benefits from an Employee Perspective

Online 401(k) providers understand how to meet the challenges and expectations of the modern era by offering:

Convenient, transparent plans: Online plans are easier and more convenient for employees to evaluate. Through Ubiquity’s many educational articles, employees can learn more about saving for retirement. We speak your employee’s language to help them make clear choices about how they’ll save for the future.

Fast enrollment: Enrollment procedures are boring at best and intimidating at worst. Completing paperwork and selecting investments pose hurdles to maximizing retirement savings. Instead, employees can effortlessly auto-enroll with Ubiquity in minutes at no extra cost. Studies show auto-enrollment can boost participation rates by 82 to 96 percent.

Digital platforms: After employers set up the plans, employees can review their accounts online or through mobile apps. Features like rebalancing or contribution changing are made accessible to all through a user-friendly dashboard.

Financial wellness tools: Ubiquity customers have access to Edukate’s complete arsenal of online financial wellness tools. These engaging benefits platforms empower employees with personalized financial guides, games, tools, and features that boost plan participation rates, as well as individual retirement savings.

Support: We support employees to work with brokers of their choice to build robust portfolios. They will have full access to a broad spectrum of investment choices, including mutual funds, managed accounts, annuities, and employer stock. Whether employees are looking to hand-pick investments from over 20,000 mutual funds and ETFs, or select a variety of turnkey investment lineups, Ubiquity offers the freedom of choice.

Communication: While some online providers only offer a chat line of dialogue, employees are welcome to call Ubiquity directly, toll-free, to have their most pressing questions answered by a live person. Though plan participants can also find most, if not all, of what they need through our online portals, we value personalized customer service equally.

Low fees: Not only are fees lower for employers, but participant fees are often lower than with traditional 401(k) plans. Unlike certain competitors, Ubiquity does not charge any fees for Assets Under Management.

Saving For Retirement Has Never Been So Easy For Employers and Employees

Social Security was once seen as a crucial safety net that allowed workers to enjoy their golden years. Today’s workforce, however, has bigger plans. Nearly a quarter of one’s life is spent in retirement. Shouldn’t these years be free from financial worry? Let Ubiquity light the way toward a path of prosperity so that you can fully enjoy it.

The good news is that most retirement fund shortfalls are driven by poor planning and misinformation. While traditional 401(k)s were confusing for small businesses to set up and administer and even more puzzling, for employees to enroll in and manage, the growing pool of affordable, flexible online 401(k) providers deliver a much-needed solution for all. The online 401(k) provider reduces the complexity of retirement planning to help companies offer a technology-driven benefit that is surprisingly simple to maintain.

It’s no secret that the life of a small business owner is a lot of work. Especially in situations where you only have a few employees (or none at all), you have to act like the Swiss army knife of your business––ready for anything and prepared for any situation. So, why add the hassle of having to pay for and run a retirement plan along with everything else? You might even wonder, is my business too small to for a 401(k) plan?

Here’s the scoop: A 401(k) is no longer a benefit reserved exclusively for large businesses with budgets to match.

There are budget-friendly, easy-to-use 401(k) solutions designed specifically for small businesses. Small business owners can now take advantage of the business tax benefits of a 401(k) plan and offer competitive retirement plan benefits for employees.

Not too familiar with 401(k) plans? No problem.

What is a small business 401(k)?

First things first: A 401(k) plan is a type of company retirement plan under Section 401(k) of the Internal Revenue Code. That part isn’t so important — here’s what is: A 401(k) allows you to save for retirement by putting away money on a pre-tax basis, which helps you to lower your taxable income. What’s that mean to you? It means you’ll get less of a tax bite on your annual salary in the short term, while your long-term investments grow tax-free until you’re ready to retire. Some 401(k) plan providers (including Ubiquity) also offer an after-tax (Roth) option, which means you won’t be taxed at the time you withdraw that money because you’ve already paid taxes on it.

A small business 401(k) is defined as a 401(k) plan for a company with anywhere from one to 100 employees. Here at Ubiquity, we specialize in the retirement plan needs of small and growing businesses, including owner-only and start-up businesses.If your business only employs you, your spouse or partner, and employees who would not be eligible to participate in a plan, a Single(k)® plan would your best option.

Small business 401(k) plans offer unique benefits to both business owners and their employees who participate in the plan.

Busting 401(k) Myths

Myth #1: 401(k) plans are too expensive for small businesses.

It’s true that many 401(k) plans are designed to only suit larger businesses. But the growing trend is to offer efficient, Web-based 401(k) plans that are more affordable to businesses of all shapes and sizes. Plans cost less than a daily latte, and employers have options for splitting costs with their employees.

Myth #2: 401(k) plans require an employer match.

An employer match or profit-sharing contribution is entirely optional with a 401(k). If you choose to offer this feature to your employees, it could help to boost participation. Keep in mind that employer contributions are also tax-deductible for your business.

Myth #3: Our employees won’t participate because they don’t make enough money.

There is no minimum contribution required with a 401(k). Offering an employer match can provide additional incentive for your employees to participate in the plan.

Myth #4: It’s too complicated.

Starting a 401(k) plan doesn’t have to be convoluted. With the right plan, you can get a new plan running in just a few hours of your time. And it’s easy to manage, with tools and reports available right at your fingertips.

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44 Montgomery Street, Suite 3060
San Francisco, CA 94104
Support: 855.401.4357

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© 2022 Ubiquity Retirement + Savings
Privacy Policy
Do not sell my info
44 Montgomery Street, Suite 3060
San Francisco, CA 94104
Support: 855.401.4357

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