The year is ending, and if you haven’t sent annual notices to plan participants, now is the time, plan sponsors!
In fact, it might be too late this year (the deadline is Dec. 1, 2024) so if you are unsure – or if you missed the deadline – here is what you need to know to get ahead of things in 2025.
A quick note: These deadlines apply to calendar-year plans. Non-calendar-year plans have different deadlines.
If you fail to send these annual notices – which are required – you could face consequences. Some examples of this are: If plan sponsors don’t send an annual 401(k) safe harbor notice, that plan could have its safe harbor status removed and then, it will have to limit or refund contributions by highly compensated employees.
There are multiple year-end notices that plan sponsors must send annually, and they must be sent within what’s dubbed a “reasonable period of time” which is usually about 30 days before the start of the plan year.
Here are a few examples of deadlines for common notices:
• Traditional Safe Harbor 401(k) Notice
• Qualified Automatic Contribution Arrangements Notice for a Safe Harbor 401(k)
• Eligible Automatic Contribution Arrangement Notice
• Qualified Default Investment Alternative Notice
• Non-Safe-Harbor Automatic Contribution Arrangement Notice
• Annual participant fee disclosures
Throughout the year, there are other notices that must be sent as well, on things like
• Summaries of Material Modifications
• Summary Annual Reports
• Notices regarding changes to investment funds
It is possible to combine notices and it’s also important to note that newly eligible participants and rehired participants might require notices as well.
While these notices are important for regulatory compliance, they could also serve as a way for plan sponsors to achieve additional goals – so make sure you are up on the latest deadlines and mandates.
Do you still have questions?
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If you have other questions about retirement plan loans, email us or call 937.308.0758.
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