Sponsors of defined contribution retirement plans should keep the following deadlines and other important dates in mind as they work toward ensuring compliance for their plans in 2023. Dates assume a calendar year plan. Some deadlines may not apply, or dates may shift based on the plan sponsor’s fiscal year.
January
31 / Action: File IRS Form 945, Annual Return of Withheld Federal Income Tax, by January 31 for non-payroll income taxes, such as taxes withheld by retirement plans, during 2022.
31 / Action: Distribute IRS Form 1099-R to participants by January 31 for 2022 retirement plan distributions.
Best Practice: Plan sponsor should confirm the accuracy of the prior year’s census data to the recordkeeper. This information is used for ADP/ACP testing, among other things.
February
28 / Action: File IRS Form 1096, Annual Summary and Transmittal of US Information Returns, with IRS if using paper transmittal by February 28 for 2022 tax year.
28 / Action: File IRS Form 1099-R in paper format with the IRS by February 28 for 2022 retirement plan distributions.
Best Practice: Review and approve compliance testing results sent by plan administrator.
March
15 / Action: Highly compensated employees who fail ADP/ACP test for prior plan year must have refunds processed by March 15 (other than eligible automatic contribution arrangements).
15 / Fund: Partnerships and S Corporations that are not getting an extension must fund employer contributions to receive tax deduction for the prior year.
31 / Action: Recordkeeper (or other responsible party) completes and files Form 1099-R electronically with the IRS by March 31 for 2022 retirement plan distributions.
April
1 / Action: April 1 deadline for 5% business owners and terminated participants who turned 72 in 2022 to receive their required minimum distribution (RMD). Participants who turn 72 during 2023 will be required to start by April 1, 2024. Note: the IRS “weekend rule” does not roll the April 1 deadline to the next business day if April 1 falls on the weekend or holiday.
14 / Distribute: Participants who contributed over 402(g) or 415 limits in the previous year must be refunded the excess amount by April 14.
18 / Fund: C-Corporations and Sole Proprietors that are not getting an extension must fund employer contributions by April 18 to receive tax deduction for the prior year.
18 / Fund: IRA contributions for the prior tax year must be funded by April 18.
June
30 / Action: Highly compensated employees who fail ADP/ACP test for prior plan year must have refunds processed by June 30, if an eligible automatic contribution arrangement (EACA).
July
31 / Action: File IRS Form 5500, Annual Return/Report of Employee Benefit Plan, and IRS Form 8955-SSA, Annual Registration Statement Identifying Separated Participants With Deferred Vested Benefits, for the 2022 plan year by July 31.
31 / Action: To request an extension of time to file IRS Form 5500, file IRS Form 5558 by July 31.
August
Best Practice: Plans may consider doing mid-year compliance testing to avoid failing applicable annual tests.
September
15 / Fund: If an extension was filed, September 15 is the deadline to fund employer contributions for Partnerships and S-Corporations.
29 / Action: September 29, Distribute Summary Annual Report (SAR) to participants if the Form 5500 was filed on July 31.
October
1 / Action: Distribute annual notices to participants no earlier than October 1 and no later than Dec 1, including notices for: 401(k) Plan Safe Harbor Match, Automatic Contribution Arrangement Safe Harbor, Automatic Enrollment and Qualified Default Investment Alternatives (QDIA).
16 / Action: October 16 is the extended deadline for filing IRS Form 5500 and IRS Form 8955-SSA.
16 / Action: October 16 is the extended deadline for filing individual and C-Corp tax returns.
16 / Action: If an extension was filed, October 16 is the deadline to fund defined contribution employer contributions for C-Corporations and Sole Proprietors.
16 / Action: October 16 to open a Simplified Employee Pension (SEP) plan for extended tax filers.
Best Practice: Make sure administrative procedures align with language in plan document.
December
1 / Action: Distribute annual participant notices no later than December 1. These include notices for: 401(k) Plan Safe Harbor Match, Automatic Contribution Arrangement Safe Harbor, Automatic Enrollment and Qualified Default Investment Alternatives (QDIA).
15 / Action: December 15 is the extended deadline to distribute Summary Annual Report (SAR) when the Form 5500 was filed on October 16.
29 / Action: December 29 is the final deadline to process corrective distributions for failed ADP/ACP testing; a 10% excise tax may apply.
29 / Action: Ongoing required minimum distributions (RMDs) for 5% business owners and terminated participants must be completed by December 29.
31 / Action: Amendments to change traditional 401(k) to safe harbor design, remove safe harbor feature or change certain discretionary modifications must be completed by December 31. Amendments to change to safe harbor nonelective design must be completed by Dec 1 of given plan year for 3% or by Dec 31 of the following year for 4% contribution level.
31 / Action: Plan sponsors must amend plan documents by December 31 for any discretionary changes made during the year.
In addition to those important deadlines and dates, plan sponsors should be aware of the contribution plan limits and other rolling notices for 2023:
- Traditional and Roth Individual Retirement Account contribution limit is $6,500. Catch-up contributions for participants age 50 and over is $1,000, which is fixed by law and not adjusted each year.
- Employee salary deferral limit for 401(k), 403(b) and 457 plans is $22,500. The catch-up contribution limit for participants who are age 50 or older in 2023 is $7,500.
- Maximum annual additions (i.e., employee deferrals, employer contributions and forfeitures) that can be allocated to a participant’s defined contribution plan account for 2023 is $66,000.
- The dollar amount used to define “highly compensated employee” under Section 414(q)(1)(B) is $150,000.
- Newly eligible employees must receive a Summary Plan Description (SPD) within 90 days after becoming covered by the plan.
- Provide quarterly statements and fee information to defined contribution plan participants.
- Provide annual lifetime income illustrations to defined contribution plan participants.
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