4th Quarter Compliance Reminders
August 28, 2024
As we approach the end of 2024, there are plenty of important deadlines to be mindful of. Staying on top of these deadlines contributes to the ongoing compliance of your plan and provides a seamless experience for your employees.
New SECURE Act 2.0 | Long-term part-time employees
Starting in the 2025 plan year, the SECURE Act 2.0 lets part-time employees who've worked at least 500 hours for two consecutive years join the company's 401(k) plan. Here's a quick guide for employers:
- January 1, 2025: Part-time employees who work 500 hours/year for 2 consecutive years are eligible to participate in the company’s 401(k) plan.
- Check your records: Look at your employee data to see who'll be eligible.
- Talk to them: Once you know who's eligible, tell them about their new 401(k) options.
Doing this early helps get your part-time employees smoothly onboard with their new benefits.
Q4 Compliance Highlights*
October 15
- If on extension, filing deadline for the Form 5500
- If on extension, filing deadline for individual and/or corporate tax returns and final contribution deadline for deductibility
- Adopting a retroactive amendment to correct minimum coverage or nondiscrimination requirements (IRC Sections 410(b) & 401(a)(4))
December 1
- Sending annual 401(k) and safe harbor match notice*
- Sending annual Qualified Default Investment Alternative (QDIA) notice*
- Sending annual automatic contribution arrangement notice (ACA)*
- It's important to send these notices at least 30 days (and not more than 90 days) before the beginning of each plan year.
December 15
- If on extension, deadline for distributing SAR to participants*
December 31
- Processing corrective distributions for failed ADP/ACP test to avoid the 10% excise tax
- Correcting a failed ADP/ACP test with qualified nonelective contributions (QNECs)
- Converting existing 401(k) plan to safe harbor non-elective design for current plan year
- Amendment to remove or convert to safe harbor status for next plan year
- Amending plan for discretionary changes implemented during plan year (certain exceptions apply)
- RMDs due under IRC Section 401(a)(9) to avoid penalties
For many employers, payroll is the operational backbone of the organization. It touches compensation, taxes, benefits, and reporting—so it’s understandable why retirement plans are often bundled there as well. If payroll providers offer a 401(k) solution, it can feel efficient to keep everything under one roof. But efficiency in payroll processing is not the same as effectiveness in retirement plan administration. As retirement plan regulations grow more complex—particularly under SECURE 2.0—many plan sponsors are discovering that payroll platforms simply weren’t designed to handle the interpretive, judgment-based responsibilities required to administer a qualified retirement plan.
It’s Not Just You: 2026 Feels More Complicated for Retirement Plans, because It IS More Complicated!
If administering a retirement plan feels more complicated than it used to, you’re not imagining it. The changes taking effect in 2026 are a continuation of several years of phased-in legislation, inflation adjustments, and regulatory guidance, much of it stemming from the SECURE 2.0 Act of 2022. Add in changes that took effect in 2024 and 2025, and the result is a retirement plan environment with more moving parts than many employers and participants are equipped to manage. Here’s what’s changing, and why 2026 stands out.
There are an estimated two million non-profit organizations in the U.S. This includes public charities, private foundations, and other types of organizations, such as schools and religious institutions. These entities operate under different tax laws and structures than for-profit companies do.