Reminder upcoming benefits deadlines for April 2021

Upcoming Benefits Deadlines for April 2021

Fulcrum Partners Human Resources

Thank you Isler Dare PC for always keeping us informed regarding upcoming benefits deadlines and for permitting us to share these updates here on Deferred Compensation News.

Benefits Deadlines Due by April 1

  • Reminder: Required minimum distributions (RMDs) for participants who turned age 70 ½ in 2020 are delayed until April 1 of the year after they reach age 72
  • Complete actuary’s certification of 2021 AFTAP[i] for defined benefit pension plans to avoid presumption that 2021 AFTAP is 10% less than 2020 AFTAP

Due by April 15

  • Fund Q1 2021 contributions to defined benefit pension plans
  • File Form 8928 to report excise taxes for noncompliance with obligation to make comparable HSA[ii] contributions (unless Form 7004 has been filed to extend due date)
  • Complete electronic filing with PBGC[iii] under ERISA[iv] 4010 (notice of underfunding) if AFTAP is less than 80% for 2020, if not previously filed
  • Process distributions of excess 402(g) deferrals under 401(k)/403(b) plans for 2020

Due by April 30

  • Distribute Annual Funding Notice for defined benefit pension plans with more than 100 participants
  • Pay final 2020 comprehensive PBGC premium for defined benefit pension plans that filed an earlier estimated variable rate premium in the October 15, 2020 comprehensive filing with the PBGC
  • Deadline for DC (defined contribution) employers to file electronically to satisfy requirements of the DC individual mandate

Special Projects and Related Benefits Deadlines

  • Schedule open enrollment planning meetings with brokers and consultants to discuss potential design changes to health and welfare plans for 2022
  • Confirm with plan vendors that quarterly Medicare Secondary Payer (MSP) reports are being filed with CMS[v]
  • Begin 2020 plan year audits for retirement plans and funded welfare trusts
  • Confirm ESOP[vi] trustees are working with valuation firms to begin annual independent appraisal process

[i] AFTAP: Adjusted funding target attainment percentage

[ii] HSA: Health Savings Account

[iii] PBGC: Pension Benefit Guaranty Corporation

[iv] ERISA: Employee Retirement Income Security Act

[v] CMS: Centers for Medicare & Medicaid Services

[vi] ESOP: Employee Stock Purchase

This material has been prepared for informational purposes only, and is not intended to provide, and should not be relied on for, accounting, legal or tax advice. Any tax advice contained herein is of a general nature. You should seek specific advice from your tax professional before pursuing any idea contemplated herein.

Securities offered through Lion Street Financial, LLC (LSF) and Valmark Securities, Inc. (VSI), each a member of FINRA and SIPC. Investment advisory services offered through CapAcuity, LLC; Lion Street Advisors, LLC (LSF) and Valmark Advisers, Inc. (VAI), each an SEC registered investment advisor. Please refer to your investment advisory agreement and the Form ADV disclosures provided to you for more information. VAI/VSI, LSF and CapAcuity, LLC. are non-affiliated entities and separate entities from OneDigital and Fulcrum Partners.

Unless otherwise noted, VAI/VSI, LSF are not affiliated, associated, authorized, endorsed by, or in any way officially connected with any other company, agency or government agency identified or referenced in this document.

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