ERISA Roundup - Q4 2024

Note from BDO's ERISA Practice Leaders

The start of a new year is a great time to take a moment and check and evaluate your total employee benefit plan package. Through BDO’s ERISA Center of Excellence and this publication, we discuss trends impacting the industry and regulations to keep top of mind, especially as there are new employee benefit plan provisions taking effect in 2025 driven by existing laws and the Setting Every Community Up for Retirement Enhancement Act of 2022 (SECURE 2.0).

Our ERISA practice leadership team is also thrilled to welcome Karolyn Ladas to BDO. Karolyn is an Assurance Principal specializing in Employee Benefit Plan Audits and brings over 20 years of experience. We look forward to continuing to serve our clients by providing valuable guidance and are excited about Karolyn's fresh perspective and leadership.

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 your feedback on our content by emailing us.

ERISA Center of Excellence

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

• 2024 Year-End Reminders Regarding Common Fringe Benefits, Special Rules for 2% S Corp Shareholders 
• 2025 Cost of Living Adjustment for Qualified Retirement Plans
• Planning for 2025: Employee Benefit Plan Changes Taking Effect
• Timing is Everything: Evaluating When to Mitigate Risk with Your Pension Plan

2025 Deadlines and Important Dates

Sponsors of defined benefit and defined contribution retirement plans should keep the following deadlines and other important dates in mind as they work toward ensuring compliance for their plans in 2024. Dates assume a calendar year plan. Some deadlines may not apply, or dates may shift based on the plan sponsor’s fiscal year. For additional support, please contact your BDO representative.

January

• 15 / Fund: Possible fourth quarter 2024 contribution due for defined benefit pension plans
• 31 / Action: File IRS Form 945, Annual Return of Withheld Federal Income Tax, by January 31 for non-payroll income taxes, such as taxes withheld by retirement plans, during 2024.
• 31 / Action: Distribute IRS Form 1099-R to participants by January 31 for 2024 retirement plan distributions

February

• 10 / Action: File IRS Form 945 for 2024 non-payroll withholding if taxes were paid in full and deposited on time
• 28 / Action: File IRS Form 1096, Annual Summary and Transmittal of US Information Returns, with IRS if using paper transmittal by February 28 for 2024 tax year.
• 28 / Action: File IRS Form 1099-R in paper format with the IRS by February 28 for 2024 retirement plan distributions

March

• 15 / Action: Highly compensated employees who fail ADP/ACP test for prior plan year must have refunds processed by March 15 (other than eligible automatic contribution arrangements).
• 15 / Fund: Partnerships and S Corporations that are not getting an extension must fund employer contributions to receive tax deduction for the prior year.
• 31 / Action: Electronic filing deadline for Form 1099-R
• 31 / Action: File IRS Form 5330 excise tax return and payment for excess 2023 ADP/ACP contributions 
  
  

April

• 1 / Action: 401(k) plans with publicly traded employer stock that follow Article 6A of the Regulation S-X (SEC format) must file Form 11-K with the Securities and Exchange Commission by April 1. 
• 1 / Action: Recordkeeper (or other responsible party) completes and files Form 1099-R electronically with the IRS by April 1 for 2024 retirement plan distributions.
• 1 / Action: April 1 deadline for 5% business owners and terminated participants who turned 73 in 2024 to receive their required minimum distribution (RMD). Note: the IRS “weekend rule” does not roll the April 1 deadline to the next business day if April 1 falls on the weekend or holiday
• 15 / Distribute: Possible first quarter 2025 contribution due for defined benefit pension plans
• 15 / Fund: April 15 possible first quarter 2025 contribution due for defined benefit pension plans (i.e., contribute by April 15 before the weekend, as contribution deadlines are not extended to the next business day)
• 15 / Distribute: Participants who contributed over 402(g) or 415 limits in the previous year must be refunded the excess amount by April 15.
• 15 / Action: File PBGC Form 4010, Notice of Underfunding for single-employer defined benefit plans with more than $15 million aggregate underfunding by Monday, April 15 
• 15 / Fund: C-Corporations and Sole Proprietors that are not getting an extension must fund employer contributions by April 15 to receive tax deduction for the prior year
• 15 / Fund: IRA contributions for the prior tax year must be funded by April 15.
• 30 / Action: Send annual funding notice to participants of single and multi-employer defined benefit plans over 100 participants by April 30.

Stay Up to Date with Our Podcast, BDO Talks ERISA

Our ERISA Center of Excellence releases a 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 of BDO Talks ERISA here or subscribe on Apple Podcast or Spotify. If you have suggestions for future topics or have a question for us to answer, please send us an email.