401(K) PLAN REQUIRED NOTICES AND DISCLOSURES

All participant directed 401(k) plans (ERISA 404(c) plans).

Individual benefit statements (IBS) must be delivered to each eligible participant and beneficiary by no later than 45 days following the end of each quarter.

The IBS must also contain similar information as is contained in the Annual Fee Statement (see below), including information about any specific fees charged to participant accounts.

“Safe Harbor” plans only.

The notice must be provided to all eligible employees within a reasonable period before the beginning of each plan year.

The “reasonable period” requirement is deemed to be satisfied if the notice is provided to each eligible employee at least 30 days and not more than 90 days before the beginning of each plan year.

For employees who become eligible after the annual notice is provided, it is deemed to be provided within a reasonable period if the notice is provided on or before the date the employee becomes eligible to participate in the plan (but not more than 90 days in advance).

Plans having a “qualified default investment alternative” only (generally plans having an automatic enrollment feature).

A copy of the annual notice to participants and beneficiaries must be distributed 30 days before the beginning of each plan year.

Plans having an automatic enrollment feature (either an ACA, EACA or QACA) only.

The notice must be distributed to all participants by at least 30 days before the beginning of each plan year.

All 401(k) plans.

Must be distributed to all eligible employees plus all terminated participants having account balances by two months following the Form 5500 filing deadline (i.e., September 30^th).

When a filing extension is obtained for the Form 5500, the SAR must be provided 2 months after the extended due date for the Form 5500 (see below).

All participant directed 401(k) plans (ERISA 404(c) plans).

Must be provided at least once in any 14-month period, without regard to whether the plan operates on a calendar or fiscal year basis.

However, the plan administrator must reasonably determine if using the extended deadline (the “14-month rule”) will benefit participants and beneficiaries.

Additional disclosure is required to be provided 30 to 90 days before any change is adopted that will affect the information or amount of expenses required to be disclosed.

“Safe Harbor” plans only.

Must be provided “within a reasonable period” before eligibility.

The IRS has stated that this rule is deemed to be satisfied if a newly eligible employee is provided the notice no more than 90 days before the employee becomes eligible and no later than the employee’s date of eligibility.

Plans having a “qualified default investment alternative” only (generally plans having an automatic enrollment feature).

Must be provided at least 30 days before plan eligibility, or at least 30 days before the first defaulted contribution goes into the QDIA.

Plans having an automatic enrollment feature (either an ACA, EACA or QACA) only.

Must be provided “within a reasonable time” before the participant’s first contribution.

For plans that automatically enroll employees immediately when they’re hired, an employer may give employees the notice on their date of hire.

If it’s impractical to give the notice to an employee before they’re eligible to be in the plan, the plan can still meet the notice timing requirements by:

• Giving notice to the employee before the pay date for the pay period in which the employee becomes eligible; and
• Allowing the employee to make deferrals from any compensation he or she received after becoming eligible.

All 401(k) plans.

The plan administrator must supply an employee with an updated edition of the SPD:

• Within 90 days after an employee becomes eligible to make 401(k) deferral contributions to the plan; or
• Within 90 days after a beneficiary or alternate payee begin receiving distributions from the plan.
• SPDs also must be provided within 30 days of a written request.

All participant directed 401(k) plans (ERISA 404(c) plans).

Must be provided prior to when an individual can first direct his or her investments under the plan.

401(k) plans experiencing a “blackout” period.

A copy of the notice generally (with certain enumerated exceptions) must be distributed to each participant no later than 30 days before the beginning of the blackout period, but not more than 60 calendar days in advance of the last date on which affected participants and beneficiaries could exercise their rights immediately before the blackout period begins.

All new 401(k) plans.

Plan administrators of a new plan must distribute an SPD within 120 days after the plan is established.

401(k) plans that are amended for a “material modification.”

If a “material modification” to the plan is made, participants must be furnished an SMM (or, alternatively, an updated SPD) within 210 days after the end of the plan year in which the change was adopted.

401(k) plans experiencing a mid-year change in fee information.

If any of the participant fee disclosure information required to be disclosed on the annual notice (see above) changes, each participant (including eligible employees who choose not to participate in the plan) and beneficiary must be furnished a description of such change at least 30 days, but not more than 90 days, in advance of the effective date of such change (with certain exceptions).

401(k) plans experiencing a mid-year addition, deletion, or change in investment funds.

If any of the participant fee disclosure information required to be disclosed on the annual notice (see above) changes (including adding, deleting or changing one or more of the plan’s investment funds), each participant (including eligible employees who choose not to participate in the plan) and beneficiaries must be furnished a description of such change at least 30 days, but not more than 90 days, in advance of the effective date of such change.

401(k) plans having company stock as an investment option only.

A plan sponsor must provide each plan participant with a notice explaining his or her right to diversify employer stock fund investments by no less than 30 days before the first day that the participant is eligible to exercise this diversification right.

“Safe Harbor” plans only.

A suspension or discontinuance of safe harbor contributions generally cannot be effective until 30 days after participants have received notice of the upcoming suspension, or, if later, the date of the plan amendment.

401(k) plans offering a “qualified preretirement survivor annuity” (QPSA) only.

A plan must give a participant a QPSA notice during the period beginning when he or she attains age 32 and ending with the close of the plan year before the participant attains age 35, or within one year from when an employee becomes a plan participant if he or she is hired after age 35.

All 401(k) plans, upon receipt of qualified domestic relations order (QDRO).

A plan administrator must send notice of receipt of the order to the affected parties (including the participant, the alternate payee, and any designated legal counsel), along with a copy of the plan’s QDRO procedures.

Additional disclosures must be made upon determination of whether or not the order qualifies as a “QDRO.”

All 401(k) plans.

Form 5500 must be filed on or before the last day of the seventh month after the plan year ends (July 31 for a calendar-year plan). Employers may apply for an automatic extension of up to 2 ½ months by filing Form 5558, “Application for Extension of Time To File Certain Employee Plan Returns,” on or before the original due date of the Form 5500.

All 401(k) plans making distributions during a taxable year.

Form 945 and full deposit of any unpaid funds generally must be made by January 31 following the end of each calendar year in which a plan has withholding on distributions.

The filing date generally may be extended until February 10 if payment of all taxes for the prior year is made in full.

All 401(k) plans reporting gross unrelated business income of $1,000 or more.

Must be filed with the IRS by the 15th day of the 4th month after the end of the tax year (may be extended).

401(k) plans issuing any contract that is intended to be a “qualifying longevity annuity contract” (QLAC) only.

Statements must be issued to participants by no later than January 31st and to the IRS by no later than February 28th.

All 401(k) plans making distributions during a taxable year.

Must be provided to participants who received a distribution in the previous calendar year by no later than January 31 following the last day of the calendar year during which the distribution was made.

Must also be provided to the IRS by no later than February 28th.

For 401(k) plans requesting a determination letter as to qualified status.

File when making a request for a determination of the plan’s qualified status under the Internal Revenue Code (no specific filing deadline; however, plans must be amended to comply with changes in the law by specific legal deadlines, depending on circumstances).

For 401(k) plans requesting a determination letter as to qualified status upon plan termination.

File when making a request for a determination of the plan’s qualified status under the Internal Revenue Code upon the plan’s termination.

File by no later than the later of 1 year from the effective date of termination, or 1 year from the date on which the action terminating the plan is adopted.

401(k) plans experiencing a plan merger or consolidation, spinoff, or transfer of plan assets or liabilities only.

File with IRS at least 30 days prior to plan merger, consolidation, spinoff or transfer of plan assets to another employer.

401(k) plans reporting certain prohibited transactions, including, for example, delayed deposit of employee elective deferrals or loan repayments.

For late deposits of employee deferrals: Must be filed (and excise taxes are due) by the last day of the seventh month after the end of the employer’s tax year.

For other specified prohibited transactions: Must be filed (and excise taxes are due) by the last day of the fifteenth month after the end of the employer’s tax year.

A six-month filing extension is available by filing Form 5558, “Application for Extension of Time To File Certain Employee Plan Returns,” on or before the original due date of Form 5330.

For 401(k) plans that had participants with vested benefits separate from service during the year, leaving benefits in the plan.

Must be filed within 7 months of the close of the plan year.

A 2 1/2 month filing extension is available.