Go beyond a basic 401(k)

Go beyond a basic 401(k)

Give your employees more than just a 401(k), join the movement.

5 min read

The Definitive 401(k) Compliance Calendar for 2020

Evan Ross
December 16, 2019
The Definitive 401(k) Compliance Calendar for 2020
Table of contents

When it comes to 401(k) compliance, you probably already know that there’s a lot you need to stay on top of.

You probably also don’t have time to spend hours researching online or digging through ERISA codes to figure out what you have to do and when you have to do it by.

That’s why we put together this simple 401(k) compliance calendar. It’s all the major 401(k) compliance deadlines you should be aware of in 2020 in one convenient page. Feel free to bookmark this page and check back every so often to stay on top of your deadlines.

While we’re on the subject of 2020 plan rules, you should be aware of these changes which may impact your compliance:

  • The elective deferral limit for 2020 has increased from $19,000 to $19,500. This deferral limit applies to each participant on a calendar year basis. The limit applies to 401(k) plans, including Roth and pre-tax contributions, 403(b) and 457(b) plans.
  • Catch-Up contributions increased to $6,500 and are available to all participants age 50 or older.
  • The 2020 annual contribution limit has increased to $57,000. This limit includes both employee and employer contributions as well as any allocated forfeitures. (For those over age 50, the annual catch-up contribution limit increases to $6,500.)

With those updates in mind, here’s the 2020 401(k) Compliance Calendar.

Note: With ForUsAll's 401(k) Solution, you do the items highlighted with blue text. We help with the rest!

401(k) Compliance Calendar 2020

*For plan years ending 12/31
Jan 31 Census data: Plan sponsor provides/confirms accurate prior year census data to the recordkeeper for compliance testing.
Questionnaire: we'll need you to provide this information so that we can ensure your plan testing is accurate.
Feb 14 Approve results from compliance testing provided by administrator.
Mar 2-Mar 13 Decide on corrective action to remedy any testing failures.
Mar 13 Provide instructions to recordkeeper to process corrective action for testing failures. (Check with your recordkeeper to ensure you provide enough time for processing.)
Mar 31 Confirm that service provider has all of the required information; the service provider prepares the plan Form 5500.
Apr 1 Engage an auditor to prepare for your audit.
Apr 15 Deadline to refund excess distributions for participants (if any) that contributed more than the 402(g) limits in the previous plan year.
Deadline for filing individual and/or corporate tax returns to fund employer contributions to the plan and receive a tax deduction for the prior year (unless filing an extension).
Jul 31 Deadline to electronically sign and file IRS form 5500 (unless requesting an extension).
Aug 14 Mid-year Testing: If the plan previously failed compliance testing, this is a good time to consider mid-year compliance testing.
Sep 15 Deadline for filing partnership tax returns (if an extension was filed). Also the deadline for partnerships to fund any employer contributions to the plan and receive a tax deduction for the previous plan year.
Sep 30 Deadline for plans who filed Form 5500 by July 31 to distribute the Summary Annual Report to all plan participants and beneficiaries receiving benefits.
Oct 1 Review your plan document: Every Fall, review the plan document to make sure that plan management is in compliance with the plan document; amendments to the plan can be made in the Fall to be effective in the new year and can be requested from the service provider.
Oct 15 Deadline to electronically sign and file IRS Form 5500 (if extension is filed via IRS Form 5558).
Nov 1-Dec 1 Distribute annual participant notices: Updated Fee Disclosures, Safe Harbor, QDIA (Qualified Default Investment Alternative), and Automatic Contribution Arrangements (if applicable). These notices can be combined for administrative ease and many service providers can assist plan sponsors with creation and distribution.
Dec 31 (If applicable) Final deadline to take corrective action for testing failure in order to avoid additional contributions.
Ongoing Make sure the plan is operated in accordance with the plan document.
For each pay period, any amounts withheld as salary deferrals by participants must be deposited by the plan sponsor no later than 7 business days following the day they are withheld.
Plan sponsor provides the summary plan description to all newly eligible participants within 90 days of their coverage under the plan.

It’s a lot to deal with, no doubt. Just be proactive and get your work underway well in advance to give yourself enough time to deal with mistakes and corrections.

Of course, If you’d rather not deal with it, we’d love to help! When companies use our All-in-One 401(k) Solution, they personally don’t have to worry about meeting most of those deadlines. With 3(16) fiduciary services, ForUsAll takes the legal responsibility for properly administering your plan off your plate. Check out our solution today to learn more!

Go beyond a basic 401(k)
Give your employees more than just a 401(k), join the movement.
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Evan Ross
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This material has been prepared for informational and educational purposes only and should not be construed as a recommendation by ForUsAll, Inc., its affiliates or employees (collectively, “ForUsAll”)  to activate a cryptocurrency window or invest in crypto.  Investing in crypto can be risky and investors must be able to afford to lose their entire investment.  You should consult with your own advisers before activating a cryptocurrency window or investing in crypto.  ForUsAll does not provide legal, tax, or accounting advice. Please refer to your Plan's fee disclosure for more details.© 2023 ForUsAll, Inc. All rights reserved.
1 Schwab 2022 401(k) Participant Study - Gen Z/Millenial Focus, October 2022.
2 As of 12/31/2022. Employees include both current employees and terminated participants with a balance.
3 "Morgan Stanley At Work: The Value of a Financial Advisor" Morgan Stanley, March 2022.
4 Sarah Britton was a client when she provided this testimonial through an independent third party review website. She received no compensation for her remarks. There are no known conflicts of interest in the provision of her comments related to the services provided.