While there are no major legislative changes required for 2016, there are some important compliance deadlines that are rapidly approaching. Plan sponsors can use the chart below to stay on track and maintain compliance.
We also note, for your reference, annual notifications that plan sponsors are required to distribute by December 1st of each year if they maintain a safe harbor plan, a plan with an auto-enrollment feature, or a plan that provides for a qualified default investment alternative.
| DEADLINE | REQUIRED ACTIONS | COMPLETED |
| December 1, 2016 | Safe Harbor 401(k) Plan: Timely distribute the annual notice to plan participants describing the safe harbor employer contribution and other safe harbor features of the plan | ✓ |
| Automatic Enrollment Features: Provide an annual notice describing the enrollment features and automatic contributions to the Plan. | ✓ | |
| Qualified Default Investment: Distribute notice that describes the qualified default investment. | ✓ | |
| December 15, 2016 | Summary Annual Report: Prepare and distribute a Summary Annual Report for each calendar year defined contribution retirement plan or health and welfare plan that filed a 2015 Form 5500 on extension by October 15, 2016. (Note that there are some limited exceptions to the Summary Annual Report rules.) | |
| Marketplace or Exchange Enrollment: Individuals must be enrolled in Marketplace or Exchange coverage by this date in order for it to be effective on January 1, 2017. Marketplace or Exchange coverage for 2016 will end on December 31, 2016. | ||
| December 31, 2016 | Required Minimum Distributions from Retirement Plans: Verify with your retirement plan TPA/recordkeeper that annual required minimum distributions have been paid. | |
| Corrective Distributions from 401(k) Plans: If your 401(k) plan failed ADP/ACP nondiscrimination testing in 2015, process the corrective distributions and report the 10% excise tax on Form 5330. | ||
| Correction of Failed Nondiscrimination Tests: Process corrections if your cafeteria plan or dependent care flexible spending accounts failed nondiscrimination tests under Code Sections 125 or 129 in 2016. | ||
| Amendments for Retirement and Health Plans: For calendar year retirement and health plans, adopt amendments reflecting any discretionary changes made to the plan’s terms or design that were implemented in 2016 but have not been memorialized in writing, or that will take effect in 2017 but need to be adopted before implementation. | ||
| CHIP and WHCRA Notices: Provide the Children’s Health Insurance Program (CHIP) Notice and the Women’s Health and Cancer Rights Act (WHCRA) Notice. Model notices for the CHIP and the WHCRA Notices are available on the Department of Labor website. These notices are often provided with annual open enrollment materials. | ||
Maximum Out of Pocket Limits: Review your health plan’s out of pocket (“OOP”) limits for compliance with the maximum limits that are permissible under the ACA:
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Work with TPA/Recordkeeper and Payroll Services to Program COLA- Adjusted Limits for Retirement Plans: Confirm with your TPA/recordkeeper and payroll provider that they have adjusted their systems to reflect the modest changes affecting retirement plan limits in 2017:
The limit on includible compensation has increased to $270,000. |
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Work with TPA/Recordkeeper and Payroll Services to Program COLA- Adjusted Limits for Medical Flexible Spending Accounts and Health Savings Accounts: Confirm with your FSA or HSA recordkeeper and payroll provider that they have adjusted their systems to reflect the modest changes affecting certain contribution limits for these programs for 2017:
The maximum amount that can be contributed to an HSA for a person with individual-only coverage has increased to $3,400. |
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| January 31, 2017 | Determination Letter – Cycle A Filers: The IRS Favorable Determination Letter Program is terminating with the end of Cycle A filings, January 31, 2017. Employers with EIN ending in 1 or 6 should consider filing for a Favorable Determination Letter. A Favorable Determination Letter provides reliance that the IRS has approved your plan as meeting the qualification requirements of the Internal Revenue Code. With the end of the Determination Letter Program it is important for your plan(s) to be reviewed periodically for compliance. Of course, we are available to assist you in this regard. | |
| February 28, 2017 | 2016 ACA Reporting to IRS (Paper Filing): Employers filing less than 250 returns must file with the IRS Form 1094-B (Transmittal of Health Coverage Information Returns) along with copies of Form 1095-B, and Form 1094-C (Transmittal of Employer-Provided Health Insurance Offer and Coverage Information Returns) along with copies of Form 1095-C. | |
| March 2, 2017 | 2016 ACA Reporting to Employees: The IRS extended the deadline to deliver ACA reporting forms to employees from January 31, 2017 to March 2, 2017. Form 1095-C (Employer Provided Health Insurance Offer and Coverage) and Form 1095-B (Health Coverage) must be distributed to employees and covered individuals. | |
| March 31, 2017 | 2016 ACA Reporting to IRS (Electronic Filing): Employers filing 250 or more returns must file with the IRS Form 1094-B (Transmittal of Health Coverage Information Returns) along with copies of Form 1095-B, and Form 1094-C (Transmittal of Employer-Provided Health Insurance Offer and Coverage Information Returns) along with copies of Form 1095-C. | |
| April 10, 2017 | The DOL is phasing in compliance with its new fiduciary rule. As a first step firms and advisors servicing retirement accounts must notify retirement investors of their fiduciary status and any material conflicts of interest, designate someone to address material conflicts of interest and monitor advisors’ adherence to impartial conduct standards, and must comply with the impartial conduct standards of the new rules. Full compliance is required by January 1, 2018. We are advising clients and suggest continued efforts towards compliance despite the possibility that certain benefit laws may be impacted depending on the actions taken by President-elect Trump. |
Our benefits team is available to assist you with bringing your retirement plans and your health and welfare plans into compliance, as well as to help identify any potential issues with respect to your employer-sponsored employee benefit plans. If you have any questions or would like to discuss further, please do not hesitate to reach out to any member of our employee benefits team.