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Below is a list of our Frequently Asked Questions:

  • When do participant notices, such as the safe harbor, QDIA, and automatic enrollment notices, need to be distributed?

    Generally speaking, these notices must be distributed to the participant no more than 90 days and no less than 30 prior to them becoming eligible for the plan.  Going forward, they should be distributed annually to all eligible participants no more than 90 days and no less than 30 prior to the beginning of the next plan year. https://www.irs.gov/Retirement-Plans/Plan-Participant,-Employee/Retirement-Topics-Notices

  • What is the deadline for depositing employer contributions into the plan in order for it to be taken as a tax deduction for the year?

    Employer contributions for a given plan year must be deposited into the plan prior to the due date of the business’ tax return for that year, including extensions.

  • What is the deadline for filing the plan’s IRS Form 5500?

    The IRS Form 5500 must be filed electronically  through EFAST2 9.5 months after the plan years end.

  • When must employee deferrals and loan payments be deposited into the plan?

    The Department of Labor has created a safe harbor period for plans with fewer than 100 participants, whereby contributions must be deposited into the plan within 7 business days from the time payroll is remitted. Otherwise, the regulations state that they must be deposited as soon as the contributions can be reasonably segregated from the company’s assets or no later than the 15th business day of the following month.

  • Under what conditions may a participant qualify for a safe harbor hardship distribution?

    According to the IRS regulations, an employee is considered to have met the requirement of having an immediate and heavy financial need if the distribution is for:

    • Medical care expenses for the employee, their spouse, dependents, or beneficiary

    • Costs directly related to the purchase of an employee’s principal residence (not including mortgage payments)

    • Tuition, related educational fees, and room & board expenses for the next 12 months post-secondary education for the employee, spouse, children, dependents or beneficiaries

    • Payments necessary to prevent the eviction of the employee from their principal residence or foreclosure on the mortgage of said residence

    • Funeral expenses for the employee, the employee’s spouse, children, dependents, or beneficiary

    • Certain expenses to repair damage to the employee’s principal residence


  • What is a fidelity bond and how much coverage should the bond have?

    A fidelity bond protects employee benefit plans from risk of loss due to fraud or dishonesty on the part of persons who handle plan funds or other property constituting plan assets.  The bond must be for at least 10% of the plan’s assets with a minimum amount of $1,000.00 per plan.  The maximum bond amount that can be required under ERISA is $500,000.00.  However, if the plan holds employer securities, the maximum bond amount is increased to $1,000,000.00.


  • What is a Required Minimum Distribution and when does it need to occur?

    A Required Minimum Distribution (RMD) is the annual minimum amount an individual must withdraw from their retirement account (IRA, SEP, SIMPLE, or other qualified retirement account) upon reaching age 70-1/2 years of age or upon retirement.  Other conditions may affect the timing of this requirement.

    The first RMD must be taken by April 1st of the year following the year in which an individual attains age 70-1/2.  In subsequent years, including the year in which an individual was paid the first RMD by April 1st, the RMD must be taken by December 31st.