ERISA Roundup – Q3 2023

A Note From BDO’s National ERISA Practice Leader

As the leaves have changed colors and we are well into Fall, it is the perfect time to take stock of those retirement plan-related tasks that you may have been putting off during the plan audit and Form 5500 filing rush.

In this edition of our ERISA Roundup, we explore the importance of clear communications during open enrollment and monitoring employee deferral limits before the end of the year. We dive into cybersecurity impacts on retirement plans, as well as explore more of the key priorities of SECURE Act 2.0. 

Staying current on ERISA topics is simplified with BDO, follow along with our regular insights at our BDO ERISA Center of Excellence and our podcast series BDO Talks ERISA. We welcome any feedback on our content at [email protected]

Center of Excellence Blurb

BDO’s ERISA Center of Excellence is your source for insights on emerging regulations, industry trends, current topics, and more. Visit us at www.bdo.com/erisa or follow along on Twitter: @BDO_USA and #BDOERISA.

In This Issue

• Plan Sponsor Alert: Tips for Effective HSA Plan Provider Selection
• Mental Health Parity Compliance
• Safeguarding Retirement Savings: Inside Secure Act 2.0 Key Priorities
• Clarifying the SECURE Act 2.0 Roth Catch- up Contribution Extension
• 2024 Cost-of-living Adjustments for Qualified Retirement Plans
• Retirement Plans & Cybersecurity: Insights for Plan Sponsors

October

• 1 / Action: Distribute annual notices to participants no earlier than October 1 and no later than Dec 1, including notices for: 401(k) Plan Safe Harbor Match, Automatic Contribution Arrangement Safe Harbor, Automatic Enrollment and Qualified Default Investment Alternatives (QDIA).
• 13 / Fund: October 13 possible third quarter 2022 contribution due for defined benefit pension plans.
• 16 / Action: October 16 is the extended deadline for filing IRS Form 5500 and IRS Form 8955-SSA.
• 16 / Action: October 16 is the extended deadline for filing individual and C-Corp tax returns.
• 16 / Action: If an extension was filed, October 16 is the deadline to fund defined contribution employer contributions for C-Corporations and Sole Proprietors.
• 16 / Action: October 16 to open a Simplified Employee Pension (SEP) plan for extended tax filers.
• 16 / Action: Send annual funding notice to participants of single- and multi-employer defined benefit plans with 100 or fewer participants by October 16.
• 16 / Action: File PBGC Form 10, Post-Event Notice of Reportable Events, by October 16, if a defined benefit plan (of any size) missed its September 15 required contribution. A filing is not due if a PBGC Form 200 was already filed for the same event.
• 16 / Action: October 16, defined benefit plan PBGC Premium filings and payments due.
• 25 / Action: File PBGC Form 200, Notice of Failure to Make Required Contributions, by October 25, if plan sponsor of a single-employer defined benefit plan does not make the October 15 required contribution, causing the plan to have more than $1 million in unpaid contributions.
• 30 / Action: Single-employer defined benefit plans that are less than 60% funded or are 80% funded and have benefit restrictions triggered must inform participants by October 30 or 30 days after the benefit restriction applies.

Best Practice: Make sure administrative procedures align with language in plan document.

November

• 15 / Action: File PBGC Form 10, Post-Event Notice of Reportable Events, by November 15, if a defined benefit plan with 100 participants missed its October 15 required contribution and it remains uncontributed. Filing is not required if the contribution could have been met with a Prefunding or Carryover Balance election or if a PBGC Form 200, Notice of Failure to Make Required Contributions, was already filed for the same event.

Best Practice: Plans may consider doing mid-year compliance testing to avoid failing applicable annual tests.

December

• 1 / Action: Distribute annual participant notices no later than December 1. These include notices for: 401(k) Plan Safe Harbor Match, Automatic Contribution Arrangement Safe Harbor, Automatic Enrollment and Qualified Default Investment Alternatives (QDIA).
• 15 / Action: December 15 is the extended deadline to distribute Summary Annual Report (SAR) when the Form 5500 was filed on October 16.
• 29 / Action: December 29 is the final deadline to process corrective distributions for failed ADP/ACP testing; a 10% excise tax may apply.
• 29 / Action: Ongoing required minimum distributions (RMDs) for 5% business owners and terminated participants must be completed by December 29.
• 31 / Action: Amendments to change traditional 401(k) to safe harbor design, remove safe harbor feature or change certain discretionary modifications must be completed by December 31. Amendments to change to safe harbor nonelective design must be completed by Dec 1 of given plan year for 3% or by Dec 31 of the following year for 4% contribution level.
• 31 / Action: Plan sponsors must amend plan documents by December 31 for any discretionary changes made during the year.

Stay Up to Date with Our Podcast, BDO Talks ERISA

Our ERISA Center of Excellence releases a monthly podcast - BDO Talks ERISA! This series covers best practices around all things ERISA and any other HR-related topics, including:

• How to avoid common compliance issues
• How to navigate the ins-and-outs of ERISA’s fiduciary provisions
• Our own experiences working for BDO’s ERISA Services group
• A deeper dive into the insights we share through our BDO ERISA Center of Excellence

Listen to new episodes at BDO.com/BDOTalksERISA or subscribe on Apple Podcast or Spotify. If you have suggestions for future topics or have a question for us to answer, send an email to [email protected].