Human Resources

Benefits and Retirement Deadline Checklist for June 2022

Benefits and Retirement Deadline Checklist for June 2022

Author Executive Benefits Team
Date May 13, 2022
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The Executive Benefits Team is pleased to share the following report, prepared by the Employee Benefits group at Isler Dare PC.

As we enter June, we want to help you keep a few deadlines in mind. June is often a good month for taking care of benefits and retirement special projects as the number of other deadlines is reduced.

“An employee stock ownership plan (ESOP) is an IRC section 401(a) qualified defined contribution plan that is a stock bonus plan or a stock bonus/money purchase plan. An ESOP must be designed to invest primarily in qualifying employer securities as defined by IRC section 4975(e)(8) and meet certain requirements of the Code and regulations. The IRS and Department of Labor share jurisdiction over some ESOP features.”

Source: IRS.gov

Benefits and Retirement Deadline June 30, 2022

  • Process participant ESOP[i] diversification elections that were made by March 31
  • Process corrective distributions to “cure” failed ADP[ii]/ACP[iii] tests for 401(k) plans with an eligible automatic contribution arrangement for 2021, to avoid the 10% excise tax

Special Projects

  • Obtain insurance renewals from all vendors
  • Work with retirement plan recordkeepers to provide modeling or projections of the cost impact and the non-discrimination testing impact of any design changes under discussion or of any unusual plan features (e.g., level of company contributions; safe harbor, auto enrollment or auto escalation features; varying employee groups; etc.)

[i] Employee stock ownership plan

[ii] Actual Deferral Percentage

[iii] Actual Contribution Percentage

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This material has been prepared for informational purposes only, and is not intended to provide, and should not be relied on for, accounting, legal or tax advice. Any tax advice contained herein is of a general nature. You should seek specific advice from your tax professional before pursuing any idea contemplated herein.

Securities offered through Lion Street Financial, LLC (LSF) and Valmark Securities, Inc. (VSI), each a member of FINRA and SIPC. Investment advisory services offered through Lion Street Advisors, LLC (LSA) and Valmark Advisers, Inc. (VAI), each an SEC registered investment advisor. Please refer to your investment advisory agreement and the Form ADV disclosures provided to you for more information. VAI/VSI and LSF/LSA are non-affiliated entities and separate entities from OneDigital.

Unless otherwise noted, VAI/VSI, LSF/LSA are not affiliated, associated, authorized, endorsed by, or in any way officially connected with any other company, agency or government agency identified or referenced in this document.

Lion Street Advisors // Lion Street Financial

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