Defined Benefit Plans
- August 30, 2018
- Posted by: Colleen
- Category: Resources
Defined Benefit plans can be great tax planning strategies when used correctly. A DB timeline document can be a great resource in assisting business owners in understanding and following the unique deadlines and administrative requirements for single employer defined benefit plans. Business owners sponsoring a defined benefit plan do not realize there are more administrative responsibilities as compared to a 401(k) plan. This can result in an operational defect creating substantial fines and penalties or the disallowance of the deductible contributions the company has made to the plan.
Key Dates in September and October
September 15: Due date of the final installment of Employer Contribution.
September 30: Second deadline for the AFTAP certification for the current year. If it’s not completed, it will be deemed to be less than 60%.
At the plan sponsor’s request, you can get this certification from the actuary.
October 15: Latest due date of Form 5500 for the prior year with a plan audit if an extension was filed.
Due date of the PBGC Form 1 filing and premium payment for the current plan year. This can be done by electronic filing, and the actuary should prepare the filing.
Due date of the third quarterly contribution for the current plan year.
Don’t miss these important dates as your current plan year begins to come to a close.