Retirement Plan Compliance: Key Deadlines and a Checklist for HR Directors

Picture this. It’s the tail end of March, and you’re buried in paperwork. Among the chaos, you realize you’ve missed a critical retirement plan compliance deadline. The result? Penalties, fines, and not-so-happy employees. Compliance management is no small feat, especially when dealing with complex retirement plans.

Missing a deadline isn’t just a logistical nightmare—it’s costly. But the good news? With a proactive, year-round approach, retirement plan compliance doesn’t have to feel overwhelming.

This guide provides a month-by-month calendar of key compliance dates, practical tips to stay on track, and a handy checklist to simplify your workload. By the end of this post, you’ll feel more in control and prepared to tackle retirement plan compliance.

**Please note: What follows is intended to alert sponsors of retirement plans governed by the Employee Retirement Income Security Act (ERISA) to some of the significant regulatory dates for the year. It might not identify all compliance obligations or due dates, and the calendar assumes that a plan is being administered on a calendar year basis by an employer using a calendar fiscal year.**

Key Dates for Retirement Plan Compliance

Staying compliant starts with knowing what’s on the timeline for your retirement plan. Below, we’ll break down crucial deadlines HR Directors and Benefits Managers should keep on their radar.

January to March

January 31

• Deadline: Ensure participants receive Form 1099-R (distributions and rollovers for the prior year).
• Details: This form must be provided to plan participants who received distributions. Missing this date could lead to IRS penalties of up to $280 per form.

Mid-February

• Deadline: Begin work on Form 5500, the annual return/report.
• Details: Procrastination here could lead to significant delays in the filing process and last-minute stress. Prepare ahead to ensure accurate reporting.

March 15

• Deadline: File Form 1042-S if your plan has distributed funds to non-U.S. residents.
• Details: Failure to comply can lead to penalties starting at $540 per form.

April to June

April 15

• Deadline: Complete contributions for employer plans tied to tax deadlines.
• Tip: Coordinate with your payroll department and tax advisors to ensure timely deposits.

May 15

• Deadline: Perform annual nondiscrimination testing.
• Why It’s Important: This ensures your retirement plan does not disproportionately favor highly compensated employees.

July to September

July 31

• Deadline: File Form 5500 (or request a 2.5-month extension if needed).
• Details: Late filings accrue penalties of $250 per day, capped at $150,000—but why risk it?

September 30

• Deadline: Distribute Summary Annual Report (SAR) if filing Form 5500 on time.
• Tip: Distribute electronically to save time and ensure timely delivery.

October to December

October 15

• Deadline: File Form 5500 if an extension was requested.
• Details: Push filings closer to the October deadline, and minor errors become costly.

December 31

• Deadline: Ensure required minimum distributions (RMDs) are made to participants aged 73+.
• Details: The penalty for missing RMDs can be as high as 50% of the amount that should have been withdrawn.

Consequences of Missed Deadlines

Failing to meet retirement plan deadlines isn’t just inconvenient—it’s expensive. The penalties include employer fines, strained employee trust, and audits. For instance, filing your Form 5500 late could lead to penalties of up to $250 per day, while missing RMDs results in hefty IRS excise taxes.

Beyond the financial pitfalls, compliance failures damage employee confidence. Your workforce trusts that benefits are being handled with care—missing deadlines can send the opposite message.

Tips for Staying Ahead of Deadlines

Create a Shared Compliance Calendar

Use a detailed calendar to track every deadline—available online to all relevant departments. Sync it with your existing project management tools.

Conduct Mid-Year Audits

Regularly audit your compliance process each June. Address discrepancies or areas of inefficiency before they snowball into bigger issues.

Utilize Automated Notifications

Most payroll and benefit systems allow for automated reminders. Setting these alerts can help you flag upcoming deadlines early.

Partner with Experts

A trusted advisor, like a third-party administrator or compliance expert, can help monitor regulatory changes and handle filings on your behalf. Brighton Jones can help!

Maintain Clear Communication with Vendors

If you’re outsourcing specific retirement plan tasks, make sure providers confirm deadlines and updates regularly. Transparency keeps everyone accountable.

Your Retirement Plan Compliance Checklist

Never miss a deadline! Use our year-round retirement plan checklist to stay on track.

Yearly Compliance Checklist

[  ] Notify participants of any plan amendments.

[  ] Conduct nondiscrimination and coverage testing.

[  ] Distribute notices to eligible employees about new or terminated plans.

[  ] Perform a document review to ensure policies reflect current laws.

[  ] File all critical forms—like Form 5500 and 1099-R—well ahead of deadlines.

[  ] Train your team on any regulatory changes that could impact compliance.

Quarterly Tasks

[  ] Check the status of employee contributions and employer matches.

[  ] Communicate with vendors to ensure timely and accurate reporting.

Monthly To-Dos

[  ] Reconcile reports to ensure the financial stability of the plan.

[  ] Verify participant enrollment accuracy.

This structured approach allows you to work through compliance in digestible phases throughout the year.

Make Compliance Worry-Free—With OpenPlan

No one wants to spend their days fretting about retirement plan hiccups. From penalty-laden deadlines to constantly changing regulations, compliance requires expertise and a proactive approach.

Don’t tackle this daunting task alone. Connect with OpenPlan to benefit from expert guidance in navigating retirement plan administration. From audits to filings, we ensure your organization stays compliant and penalty-free year-round.

 

This content is for informational and educational purposes only and should not be construed as individualized advice or a recommendation for any specific product, strategy, or course of action. Brighton Jones, its affiliates, and employees do not provide personalized investment, financial, tax, or legal advice through this communication. This material is not intended to, and does not, create a fiduciary relationship under ERISA or any other applicable law. For individualized advice tailored to your specific circumstances, please consult with your adviser.