401k and 403b Plan Reminders for 2012

Why do I have to get my census and reports to my plan adminstrator in January?  There are a couple of reasons, and failure to comply can cause significant penalties.  Please make sure to get your year-end reporting done as soon as possible, but no later than January 31. – Reeve

EXCESS DEFERRALS- for the 2012 calendar year, employee deferrals cannot exceed $17,000, or $22,500 for those over age 50 using “cathc-up”provisions.  Any excess Deferrals must be distributed to the participant, with related earnings by April 15, 2013.  Faliure to do so may cause loss of tax deferred status for the entire plan.

ANNUAL ADDITIONS- The same rule applys for the overall contriutions, which are limited in 2012 to $50,000 or 100% of the employees compensation, whichever is less.  Corrective Distributions are due by March 15, 2013.

PLAN TESTING- Any changes that are necessary, should your plan not be a safe-harbor plan, and fail the ACP/ADP testing, are also due by March 15, 2013.  If you are a safe-harbor plan, you hae nothing to worry about here.

FORFEITURE ACCOUNTS must be allocated  by a certain date, either to future contriutions, or across current employees.

FORM 5500 is due by July 15 for most plans.