2011 Year End Compliance Checklist for Retirement Plans
As 2011 comes to a close, plan sponsors should take an opportunity to review their plan to ensure it complies with various statutory and regulatory requirements. This checklist offers general compliance requirements common to most calendar year retirement plans. If you have further questions about any of the requirements listed and how they affect your plan, please contact your Nyhart consultant.
| DATE | REQUIREMENT | PLAN TYPES AFFECTED |
| 12/31 | Corrective contributions to the plan for a failed ADP/ACP test in the prior plan year. These contributions must be made by the last day of the plan year following the year of failure. (QNEC, QMAC) | 401(k) |
| 12/31 | Deadline for processing corrective distributions for 401(k) plans that failed ADP/ACP tests in the prior year and will not make corrective employer contributions. The plan sponsor must distribute any excesses by the last day of the 12th month after the plan year in which the failure occurred and will be subject to a 10% excise tax. | Plans with 401(k) and/or 401(m) arrangements |
| 12/31 | Last day to make required minimum distributions (RMDs) to participants or beneficiaries who attained age 70 ½ in a prior year and: (1) have terminated employment; or (2) participate in plans that provided for age 70 ½ distributions while still employed; or (3) are 5% owners. | Qualified Plans, 403(b) plans, 457(b) plans |
| 12/31 | Last day for an amendment to remove safe harbor status for the next plan year or to convert an existing 401(k) plan into a safe harbor design for the next plan year. Note: Plans converting to a safe harbor design should have sent participant notices by 12/1. | 401(k) |
| 12/31 | Deadline for amending the plan for discretionary changes executed during the plan year. | All |
| 12/31 | In-plan Roth rollover amendments, if added during 2010 or 2011, plans have until the end of the 2011 plan year to implement the change. | 401(k), 403(b), or governmental 457(b) |
| 12/31 | 401(k) deferral election deadline for partners. Election must be made by the last day of the LLC or partnership tax year. Applies to
Self-employed owners – sole proprietor, partner, or LLC member. |
401(k) plans sponsored by partnerships, LLCs, sole proprietors |
| 12/31 | Nonqualified plan deferral elections for 2012 must be made prior to beginning of applicable tax year. | Nonqualified deferred compensation plans subject to 409A, 457(f) plans |
If you have additional questions about deadlines or issues for your plan in 2011, please contact your Nyhart consultant immediately.
This article was last updated on December 19, 2011