Be Sure to Issue Your 401(k) Safe Harbor, QDIA and Automatic Enrollment Annual Notices Before the Deadline
It’s nearing the end of the year, and for those of you with retirement plan years beginning on January 1st, you may be closing in on yet another notice deadline depending on the design of your plan.
If your plan is designed to satisfy the 401(k)/401(m) safe harbor contribution rules, either through an annual non-elective contribution or a matching contribution, you must send the annual notice to participants no later than thirty days prior to the end of the plan year. Remember, you must send the annual safe harbor notice to ALL eligible employees, not just those that are participating in the plan.
QDIA Notice
If your plan is participant-directed and offers a qualified default investment alternative (QDIA) for participants that have not provided investment directions, you must provide an annual QDIA notice to all participants at least thirty days prior to the first day of the plan year.
If your plan is designed to satisfy the 401(k)/401(m) safe harbor contribution rules, either through an annual non-elective contribution or a matching contribution, you must send the annual notice to participants no later than thirty days prior to the end of the plan year. Remember, you must send the annual safe harbor notice to ALL eligible employees, not just those that are participating in the plan.
QDIA Notice
If your plan is participant-directed and offers a qualified default investment alternative (QDIA) for participants that have not provided investment directions, you must provide an annual QDIA notice to all participants at least thirty days prior to the first day of the plan year.
Automatic Enrollment Notice
And last but not least, if your plan contains an automatic enrollment feature, you must provide an annual notice to all participants…that’s right, no later than thirty days prior to the first day of the plan year.
For those features that apply to your plan, the notices must be issued no later than December 2, 2014, which is the Tuesday after Thanksgiving. Time always seems to slip away during the holidays, so don’t delay, make sure your notices are in order, and get them out the door now. Then, you can focus on your Thanksgiving plate at home instead of the looming retirement plan obligations on your plate at work.