Mary Beth’s Corner

Staying Ahead in 2025 – Compliance Deadlines You Don’t Want to Miss!

Administration, General
January 23, 2025

Start 2025 off on the right foot! Here’s a rundown of some compliance and testing dates and deadlines to keep in mind for 2025:

Nondiscrimination Testing Dates - ADP/ACP Testing Dates

ADP (Actual Deferral Percentage) and ACP (Actual Contribution Percentage) tests are IRS nondiscrimination tests that ensure 401(k) plans don’t favor highly compensated employees (HCEs) over non-highly compensated employees (NHCEs). If a plan is Safe Harbor, it automatically passes these tests.

January 31, 2025: Deadline for plan sponsors to submit the Annual Plan Questionnaire & 2024 Employee Census Data in good order to ensure testing and employer contribution deadlines are met.
March 6, 2025: Deadline for plan sponsors to sign off on ADP/ACP test results to ensure timely processing of any applicable corrective distributions.

March 17, 2025: Deadline for processing most ADP/ACP corrective distributions to avoid a 10% excise tax.

*Note that the plan sponsor is responsible for paying this excise tax if applicable.

Form 5500 and Form 5558 Dates

The Form 5500 is a required filing with the DOL and contains information about a 401(k) plan’s financial condition, plan qualifications, and operation. The form aims to provide the IRS and DOL with information about the plan’s operation and compliance with government regulations.

April 15, 2025: Deadline for C-Corps and Sole Props to make 2024 employer contributions for tax deductibility purposes when filing without an extension.
July 31, 2025: Standard deadline for filing Form 5500/5500-SF without an extension.

October 15, 2025: Final deadline for submitting Form 5500/5500-SF if Form 5558 was filed for an extension.

Other Important Dates

September 15, 2025: Deadline for plan sponsor to communicate any requested Plan amendments for an effective date of January 1, 2026.
December 1, 2025: Deadline for plan sponsor to distribute required Plan notices for the 2026 plan year.

December 29, 2025: Deadline for processing corrective distributions for failed ADP/ACP tests for the plan year ending December 31, 2024, to avoid plan disqualification.

By helping your business owner clients stay informed of these dates and maintain proactive communication with their plan administrators, you’ll ensure smooth compliance and minimize potential penalties.

Let Us Be a Resource

To ensure you don’t miss any crucial deadlines, be sure to reference our Annual Retirement Plan Administration and Compliance Timeline for a comprehensive list of important dates throughout the year. This timeline provides a detailed overview of nondiscrimination testing, employer contribution calculations, and other critical compliance milestones for plans with a calendar year-end of December 31, 2024.

Have questions or need clarification? Don’t hesitate to reach out to us at My Benefits – we’re here to help you navigate the complexities of retirement plan compliance for your business owner clients.