Just when you needed a window for scheduling some time off, June rolls in with a shorter than usual checklist of health and retirement benefits deadlines to meet. Thank you, as always, to our friends at IslerDare PC for providing us timely reminders and permitting us to share them with readers of Deferred Compensation News.
June Benefits Deadlines Due June 30, 2021
- Process participant ESOP* diversification elections that were made by March 31
- Process corrective distributions to “cure” failed ADP/ACP** tests for 401(k) plans with an eligible automatic contribution arrangement for 2020, to avoid the 10% excise tax
Special Projects for Any Time in the Month of June
With a lighter load this month, now is a good time to take care of the following housekeeping tasks that you’ll be glad later you dealt with now.
- Obtain insurance renewals from all vendors
- Work with retirement plan recordkeepers to provide modeling or projections of the cost impact and the nondiscrimination testing impact of any design changes under discussion or of any unusual plan features (e.g., level of company contributions; safe harbor; auto enrollment or auto escalation features; varying employee groups; etc.)
*ESOP – employee stock ownership plan
** ADP/ACP – Actual Deferral Percentage (ADP) and Actual Contribution Percentage (ACP)
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