2017 COMPLIANCE CHECKLIST

Transcription

1 2017 COMPLIANCE CHECKLIST Fo Qualified Govenmental and Nonelecting Chuch Plans, Non-ERISA 403(b) Plans, 457 Plans and Nonqualified Executive Benefit Plans that ae not subject to ERISA.

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3 COMPLIANCE CHECKLIST FOR 2017 As a etiement plan sponso, you know how impotant it is to comply with the eve-changing epoting and disclosue equiements mandated by the fedeal govenment. You also know how confusing it can be. As you povide of etiement sevices, we ae always looking fo ways we can make you job easie. That is why we ae pleased to povide you with ou Compliance Checklist fo 2017, offeed to Pudential Retiement clients by ou Full Sevice Solutions depatment. The Compliance Checklist incopoates equiements fo govenmental and nonelecting chuch plans, non-erisa 403(b) plans, 457 plans and nonqualified executive benefit plans, and povides infomation on the mateials that you will need to file, filing due dates and agencies to which the filings should be made. In addition, we ve identified how Pudential Retiement can help you complete each task. We ae confident that you will find this checklist to be a valuable efeence tool. If you have any questions on any of the items coveed in the Compliance Checklist, o if you would like additional infomation on how Pudential Retiement can help you meet these equiements, please contact you Pudential Retiement epesentative. 1

4 HOW TO USE THIS CHECKLIST We ve designed this checklist as a quick glance esouce to help you meet epoting and disclosue equiements fo plans that ae not subject to the epoting and disclosue equiements of ERISA. This easy-to-follow checklist should help you povide timely and complete infomation to individuals and appopiate govenment agencies. We suggest you keep you checklist in a convenient place so you can efe to it wheneve you may need to take specific action. Fo you convenience, we ve divided it into the following epoting categoies: Paticipants & Beneficiaies Pages 5 though 10 Intenal Revenue Sevice (IRS) Pages 11 though 15 Each of the categoies contains five sections: Status This column is a convenient way to monito the activity fo each item that applies to you plan. Plan This column indicates whethe the item applies to: DB DC 403(b) 457(b)* Qualified govenmental o nonelecting chuch defined benefit ( DB ) plans Qualified govenmental o nonelecting chuch defined contibution ( DC ) plans Non-ERISA 403(b) plans ( 403(b) ) Section 457(b) plans ( 457(b) ), including plans of govenmental and tax exempt employes, unless noted othewise. Status NQ Unfunded nonqualified plans ( NQ ), including 457(f) plans Plan Item Action/Suppot Remembe, if you sponso multiple plans, these equiements apply sepaately to each plan. Item When Due Action/Suppot This column lists what must be completed fo each item and descibes Pudential Retiement s ole in suppoting the tasks. In addition, this column indicates how these actions must be pefomed. When Due This column specifies the deadline o completion time fame fo each item. PRUDENTIAL RETIREMENT CANNOT PROVIDE TAX OR LEGAL ADVICE. PLAN SPONSORS SHOULD CONSULT THEIR ATTORNEYS ABOUT THE APPLICATION OF ANY LAW TO THEIR RETIREMENT PLANS. 2

5 HOW TO USE THIS CHECKLIST (CONTINUED) We suggest you stat by eviewing in each section the items that apply to you type of plan(s). The mandatoy annual (o moe fequent) ecuing items appea in bold within each section. You ae equied by law to act on these items if they apply to you plan. Next to the applicable items, place a checkmak in the box povided in the Status column. Then look in the When Due column to detemine you deadline and pencil it in next to Action Date. Thee ae two categoies of event-diven items, which equie action only unde cetain cicumstances. The fist categoy includes items that may apply to you plan, such as a change in you plan s vesting schedule. Fo these, you can fill in the Action Date. A sepaate edition of Pudential s Compliance Checklist addesses epoting and disclosue equiements fo plans that ae subject to ERISA Title I. The infomation pesented hee eflects epoting and disclosue equiements in effect as of Januay 1, Since egulations ae always subject to change, you should consult you tax adviso fo updates. The Compliance Checklist and othe impotant compliance publications, such as Pudential s Pension Analyst, may be found on Pudential s website at PRUDENTIAL.COM/PENSIONANALYST. The second categoy of event-diven items coves those that apply to individuals in you plan. Because these can occu fequently each yea, an Action Date is not included, but you may find it useful to jot down notes in the Status column. This edition of Pudential s Compliance Checklist addesses those epoting and disclosue equiements fo plans not subject to ERISA. In addition, it indicates what you need to povide o file and when. Finally, the Action/Suppot column indicates how Pudential woks with you to complete each epoting and disclosue task. PRUDENTIAL RETIREMENT CANNOT PROVIDE TAX OR LEGAL ADVICE. PLAN SPONSORS SHOULD CONSULT THEIR ATTORNEYS ABOUT THE APPLICATION OF ANY LAW TO THEIR RETIREMENT PLANS. 3

6 SPECIAL NOTE ABOUT NONQUALIFIED PLAN REPORTING REQUIREMENTS In geneal, a nonqualified top-hat * plan is subject to ERISA epoting equiements, including the equiement to file Fom 5500 annually. Howeve, when a top-hat plan is unfunded (i.e., the geneal assets of the employe ae used as the sole souce to povide benefits), the plan sponso may epot the following infomation diectly to the Depatment of Labo (DOL), instead of filing Fom 5500: 1. The sponsoing employe s name, addess and Employe Identification Numbe (EIN); 2. A declaation that the employe maintains the plan pimaily to povide nonqualified defeed compensation to a select goup of management o highly compensated employees; and 3. A statement of the numbe of top-hat plans and the numbe of employees paticipating in each such plan. This statement must be filed within 120 days of the plan inception date. The statement may be filed electonically by following the DOL s filing instuctions at dol.gov/ebsa/efiletophatplanfilinginstuctions. html. Fo moe infomation on electonic filing, see Pudential s Pension Analyst fom Novembe 2014 titled IRS and DOL povide additional electonic filing guidance. Altenatively, a pape submission may be sent to: Top-Hat Plan Exemption Employee Benefits Secuity Administation Room N-1513 U.S. Depatment of Labo 200 Constitution Avenue NW Washington, D.C If the infomation is not povided within this time fame, the plan sponso will be equied to distibute Summay Plan Desciptions and to comply with all ERISA Title I epoting and disclosue equiements, including the annual filing of Fom * TAX-EXEMPT 457(B) PLANS ARE CONSIDERED TOP-HAT PLANS SUBJECT TO THESE REQUIREMENTS. 4

7 PARTICIPANTS & BENEFICIARIES Status Plan Item Action/Suppot When Due Statu Plan Item Action/Suppot When Due DB DC 403(b) 457(b)* Fom 1099-R to epot distibutions, including diect olloves fom qualified plans, 403(b) plans and govenmental 457(b) plans. Pudential issues Foms 1099-R to paticipants and beneficiaies in plans whose plan sponsos have elected to use ou Benefit Payment Sevices. Januay 31 of the yea following the calenda yea in which the distibution was made. 457(b)** NQ Fom 1099-MISC to epot distibutions fom a nonqualified plan o a tax-exempt 457(b) plan to a paticipant s beneficiay. Fo 457(b) plans, Pudential issues Foms 1099-MISC to beneficiaies in nonqualified plans whose plan sponsos have elected to use ou Benefit Payment Sevices. Fo nonqualified plans, the payo issues the Fom 1099-MISC to beneficiaies. Januay 31 of the yea following the calenda yea in which the distibution was made. DB DC 403(b) 457(b) NQ Fom 1042-S to epot distibutions made to cetain nonesident aliens. Fo defined benefit, defined contibution, 403(b), and 457(b) plans, Pudential issues Foms 1042-S to paticipants and beneficiaies in plans whose plan sponsos have elected to use ou Benefit Payment Sevices. Fo nonqualified plans, the payo issues the Fom 1042-S. Mach 15 of the yea following the calenda yea in which the distibution was made. 457(b)** NQ Fom W-2 to epot distibutions made to paticipants fom nonqualified plans o tax-exempt 457(b) plans. Fo 457(b) plans, Pudential issues Foms W-2 to paticipants in plans whose plan sponsos have elected to use ou Benefit Payment Sevices. Fo nonqualified plans, the payo issues the Fom W-2 to beneficiaies. Januay 31 of the yea following the calenda yea in which the distibution was made. * APPLIES TO GOVERNMENTAL 457(B) PLANS ONLY. ** APPLIES TO TAX-EXEMPT 457(B) PLANS ONLY. 5

8 PARTICIPANTS & BENEFICIARIES (CONTINUED) Statu Plan Item Action/Suppot When Due DC 403(b) 457(b)* Eligible Automatic Contibution Aangement Notice (EACA). Plan sponsos of automatic enollment plans that meet the eligible automatic contibution aangement equiements (to pemit penalty-fee distibution of accidental automatic defeals) must povide employees with a notice that descibes the level of contibution that will be made if the employee does not make an affimative election, the employee s ight to elect a diffeent pecentage, and how contibutions will be invested in the absence of an investment election. If applicable, the notice must also descibe the ability fo the employee to eceive a withdawal of accidental defeals and the pocedues to elect such a withdawal. Fo moe infomation egading additional items that must be included in the EACA Notice, please see Pudential s May 2009 Pension Analyst titled IRS povides final guidance on automatic enollment plan designs. Pudential Retiement offes vaying levels of notice suppot to plan sponsos. Fo moe infomation egading annual notices, see Pudential s Compliance Bulletin titled Many defined contibution plan sponsos must annually notice thei paticipants. Within a easonable peiod of time befoe the employee becomes eligible and within a easonable time befoe the beginning of each plan yea. At least 30 days and no moe than 90 days befoe the beginning of the plan yea is deemed easonable. * APPLIES TO GOVERNMENTAL 457(B) PLANS ONLY. 6

9 PARTICIPANTS & BENEFICIARIES (CONTINUED) Statu Plan Item Action/Suppot When Due DB DC Summay Plan Desciption (SPD) o booklet (contains desciptive infomation concening plan povisions and administation). Pudential dafts an employee booklet fo clients who have elected to use ou Plan Document Sevices. No specific due date. Govenmental and nonelecting chuch plans ae not subject to ERISA s paticipant disclosue equiements. Howeve, plan sponsos must tell employees about the plan and any changes made to the plan fo the plan to be qualified. Instead of poviding an official SPD, plan sponsos may: give each employee a copy of the plan document; give each employee a booklet summaizing the plan; o post a notice about the plan on a bulletin boad. Retiement systems of states that have adopted the Unifom Management of Public Employee Retiement Systems Act of 1997 (UMPERSA) must include cetain specific infomation in an SPD. DB DC Notice to inteested paties of application fo initial qualification o fo amendment of plan unde Intenal Revenue Code. Plan sponsos geneally must povide this notice to eligible employees and othe employees woking at the same pincipal place of employment. Pudential pepaes a sample of this notice fo clients who have elected ou Plan Document Sevices, if applicable. If seeking a detemination lette, the plan must povide notice to inteested paties. The notice must be povided no less than 10 and no moe than 24 days befoe the application fo the detemination lette is mailed. 7

10 PARTICIPANTS & BENEFICIARIES (CONTINUED) Statu Plan Item Action/Suppot When Due DB DC 403(b)* 457(b) Requied Minimum Distibutions (RMD). DB DC Witten explanation of peetiement suvivo annuity and joint and suvivo annuity. Plan sponsos ae esponsible fo detemining which paticipants must eceive RMDs. Fo defined benefit clients, Pudential publishes a special annual issue of Pension Analyst titled, Defined benefit plans must make equied payments, which contains updated infomation on the ules. Plan sponsos must submit the appopiate foms to initiate distibutions. Pudential sends a listing of paticipants who ae/will be age 70½ o olde duing the upcoming calenda yea to defined contibution, defined benefit, 403(b), and 457(b) clients who use ou Recodkeeping Sevice. Afte plan sponsos eview the list and submit evisions, Pudential sends infomation diectly to affected paticipants to initiate the equied distibutions. As equied by the plan document, plan sponsos must povide these notices to paticipants and thei spouses. Pudential has published a Pension Analyst on Suvivo Benefit Rules fo Defined Benefit Plans (June 1994) and fo Defined Contibution Plans (August 1999). The fist distibution must be made by Apil 1 following the calenda yea in which the paticipant eties o tuns 70½, whicheve comes late. Special Note: A paticipant who signed an election befoe Januay 1, 1984 to emain unde pe-tax Equity and Fiscal Responsibility Act (TEFRA) ules can delay payments accoding to that election. Even though qualified govenmental and nonelecting chuch plans ae not subject to ERISA s suvivo benefit equiement, some plan sponsos choose to povide peetiement suvivo o joint and suvivo benefits. If you plan document contains paticipant notification equiements, you must administe it accoding to those equiements fo the plan to emain qualified. Howeve, you may emove those povisions fom the plan at any time by adopting an appopiate plan amendment. * FOR 403(B) PLANS, RMD REQUIREMENTS APPLY ONLY TO THE PORTION OF THE ACCOUNT BALANCE ACCRUED AFTER DECEMBER 31, FOR THE PORTION OF THE ACCOUNT BALANCE THAT ACCRUED BEFORE JANUARY 1, 1987, RMD REQUIREMENTS APPLY BEGINNING IN THE YEAR IN WHICH THE EMPLOYEE TURNS AGE 75, REGARDLESS OF EMPLOYMENT STATUS. 8

11 PARTICIPANTS & BENEFICIARIES (CONTINUED) Statu Plan Item Action/Suppot When Due DB DC 403(b) 457(b)* Special Tax Notice Regading Plan Payments (Section 402(f) Notice). DB DC 403(b) 457(b)* Automatic Rollove Notice fo plans with mandatoy distibutions exceeding $1,000. Plan sponsos must povide this notice to paticipants and beneficiaies. Pudential povides this notice to paticipants in defined contibution plans who equest distibutions though Pudential s Paticipant Sevice Cente, Online Retiement Cente, Retiement Secuity Education o the Diect Sevice Option. Fo defined benefit plans that use Pudential Retiement s Outsoucing Sevices, Pudential povides this notice to paticipants. Fo defined contibution plans that use Pudential Retiement s Distibution Options Lette, Pudential will povide this notice to paticipants. Also, fo defined benefit plans that use Pudential Retiement s Outsoucing Sevices, Pudential will povide this notice to paticipants. No less than 30 days and no moe than 180 days befoe the distibution date. Paticipants can waive the 30-day waiting peiod if: (a) the paticipant is given at least 30 days afte eceiving the notice to make a decision to diectly oll ove the payment; (b) the plan administato clealy lets the paticipant know that he/she has at least 30 days in which to make a decision; and (c) the paticipant s spouse does not have to consent to the distibution. Pio to the date the mandatoy distibution is made. DB DC 403(b) 457(b)* Notice of ight to elect not to have fedeal income tax withheld fom distibutions othe than eligible ollove distibutions. Plan sponsos must povide this notice to paticipants and beneficiaies taking distibutions. Peiodic payment: no ealie than six months befoe and no late than with the fist payment. Notice of the ight to make o evoke an existing election must theeafte be given once each calenda yea, at appoximately the same time. Nonpeiodic payment: no ealie than six months befoe the distibution but within easonable time fo payee to make a decision and notify paye of election choice befoe distibution is made. Note: U.S. citizens living aboad with no pemanent esident addess in the U.S. cannot elect out of fedeal tax withholding. Special ules may apply to nonesident aliens. * ITEM APPLIES TO GOVERNMENTAL 457(B) PLANS. DISTRIBUTIONS FROM NONGOVERNMENTAL (I.E., TAX-EXEMPT) 457(B) PLANS ARE NOT ELIGIBLE FOR ROLLOVER. 9

12 PARTICIPANTS & BENEFICIARIES (CONTINUED) Statu Plan Item Action/Suppot When Due DB DC 403(b) 457(b) Statements to new employees not coveed by Social Secuity. State and local govenmental employes ae equied to povide a statement to employees hied on o afte Januay 1, 2005, whose jobs ae not coveed by Social Secuity. A copy of the statement with the employee s signatue must be sent to the pension-paying agency. Fo moe infomation, see Pudential s Compliance Bulletin fom Mach 2005, titled New Law Requies Employes to Povide Statements To New Employees Not Coveed By Social Secuity. Employes must give the statement to an employee befoe he o she is hied. 403(b) Univesal availability ule. Plan sponsos must povide employees with an effective oppotunity to make o change a cash o defeed election ( univesal availability ule. ) Pudential can povide a sample template that can be used fo this pupose. At least once duing each plan yea, paticipants must be made awae of the oppotunity to defe. DB Notice of ight to supply actual eanings histoy unde plans using estimated wages to detemine Social Secuity offset in benefit fomula. Plan sponsos must povide this notice to paticipants, if applicable. This is due: (a) with SPD, if distibuted; and (b) upon sepaation fom sevice. 10

13 INTERNAL REVENUE SERVICE Status Plan Item Action/Suppot When Due Statu Plan Item Action/Suppot When Due DB DC 403(b) 457(b)* Fom 1099-R to epot distibutions including diect olloves fom qualified plans, 403(b) plans, and govenmental 457(b) plans. Pudential files Fom 1099-R with the IRS fo plans whose plan sponsos have elected to use ou Benefit Payment Sevices. Febuay 28 of the yea following the calenda yea in which the distibution was made. If filing electonically, the due date is Mach 31 of the yea following the yea in which the distibution was made. A 30-day extension to eithe filing deadline may be equested by filing Fom 8809 by the applicable filing due date. 457(b)** NQ Fom 1099-MISC to epot distibutions fom a nonqualified plan o a tax-exempt 457(b) plan to a paticipant s beneficiay. Fo 457(b) plans, Pudential files Fom 1099-MISC with the IRS fo plans whose plan sponsos have elected to use ou Benefit Payment Sevices. Fo nonqualified plans, the payo files the Fom 1099-MISC with the IRS. Febuay 28 of the yea following the calenda yea in which the distibution was made. If filing electonically, the due date is Mach 31 of the yea following the yea in which the distibution was made. A 30-day extension to eithe filing deadline may be equested by filing Fom 8809 by the applicable filing due date. DB DC 403(b) 457(b)* NQ Fom 945 to epot income tax withheld fom distibutions made fom qualified plans, 403(b) plans, govenmental 457(b) plans, and fom nonqualified plans to paticipants beneficiaies. Fo defined benefit, defined contibution, 403(b), and 457(b) plans, Pudential files Fom 945 with the IRS fo plans whose plan sponsos have elected to use ou Benefit Payment Sevices. Fo nonqualified plans, the payo files Fom 945 with the IRS. Januay 31 of the yea following the calenda yea in which the distibutions wee made. This filing deadline can be extended by 10 days if tax payments wee made on time and in full. DB DC 403(b) 457(b) NQ Fom 1042-S to epot distibutions made to cetain nonesident aliens. Fo defined benefit, defined contibution, 403(b), and 457(b) plans, Pudential files Fom 1042-S with the IRS fo plans whose plan sponsos have elected to use ou Benefit Payment Sevices. Fo nonqualified plans, the payo files Fom 1042-S with the IRS. Mach 15 of the yea following the calenda yea in which the distibution was made. A 30-day extension may be equested by filing Fom 8809 by this due date. DB DC 403(b) 457(b) NQ Fom 1042 to epot income tax withheld fom distibutions made to cetain nonesident aliens. Fo defined benefit, defined contibution, 403(b) and 457(b) plans, Pudential files Fom 1042 with the IRS fo plans whose plan sponsos have elected to use ou Benefit Payment Sevices. Fo nonqualified plans, the payo files Fom 1042 with the IRS. Mach 15 of the yea following the calenda yea in which the distibution was made. The filing deadline can be extended up to 90 days by filing Fom Howeve, the filing of Fom 2758 does not extend the time fo the payment of income tax. * APPLIES TO GOVERNMENTAL 457(B) PLANS ONLY. ** APPLIES TO TAX-EXEMPT 457(B) PLANS ONLY. 11

14 INTERNAL REVENUE SERVICE (CONTINUED) Statu Plan Item Action/Suppot When Due 457(b)** NQ Fom W-2 to epot distibutions made to paticipants fom nonqualified plans o tax-exempt 457(b) plans. Fo 457(b) plans, Pudential files Fom W-2 with the IRS fo plans whose plan sponsos have elected to use ou Benefit Payment Sevices. Fo nonqualified plans, the payo files Fom W-2 with the IRS. Febuay 28 of the yea following the calenda yea in which the distibution was made. If filing electonically, the due date is Mach 31 of the yea following the yea in which the distibution was made. A 30-day extension to eithe filing deadline may be equested by filing Fom 8809 by the applicable filing due date. 457(b)** NQ Fom 941 to epot income tax withheld fom distibutions made to paticipants fom nonqualified plans and tax-exempt 457(b) plans. Fo 457(b) plans, Pudential files Fom 941 with the IRS fo plans whose plan sponsos have elected to use Benefit Payment Sevices. Fo nonqualified plans, the payo files Fom 941 with the IRS. Last day of the month following the end of each calenda quate in which distibutions wee made. This filing deadline can be extended by 10 days if tax payments wee made on time and in full. DC 403(b) 457(b) Coection of Excesses: (1) Elective Defeal Limit Fo 2016 and 2017: $18,000 Plan sponsos ae esponsible fo monitoing the defeal limit. Geneally, plan sponsos povide Pudential with diection to distibute excess defeals. If pemitted by the plan, catch-up eligible paticipants may have excess defeals eclassified as catch-up contibutions up to the limit fo the specified yea (the age 50 catch-up limit is $6,000 fo 2016 and 2017). Calenda-yea test peiod must distibute no late than Apil 15 of calenda yea following the yea in which excess defeals occued. Govenmental 457(b) plans must distibute the excess defeals as soon as administatively pacticable. Unde a 403(b) pogam, cetain employees of an eligible oganization may make additional defeals unde a 15-yea catch-up option. Fo a 457(b) plan, the basic annual limit fo 2017 is the lesse of $18,000, o 100% of the paticipant s includible compensation. Unde a 457(b) plan, cetain employees may also be eligible fo a special Section 457 catch-up limit. ** APPLIES TO TAX-EXEMPT 457(B) PLANS ONLY. 12

15 INTERNAL REVENUE SERVICE (CONTINUED) Statu Plan Item Action/Suppot When Due DC (2) Excess Contibution (401(k)/ADP) Sponsos of non-electing 401(k) chuch plans may need to test paticipants contibutions (excluding catch-up contibutions) and make the appopiate coections fo all excess contibutions if the plan has one o moe highly compensated paticipants. Fo plan sponsos who use Pudential s Compliance Testing Sevices, Pudential can pefom the tests, and will povide plan sponsos with infomation egading the coection pocess. Plan sponsos who do not use Pudential s Compliance Testing Sevices must diect Pudential to take coective action. The Actual Defeal Pecentage (APD) test and coective action do not apply to plans that satisfy the equiements of a tadional safe habo o Qualified Automatic Contibution Aangements (QACA) plan design. Plan-yea test peiod-distibution (fofeitue of nonvested matching contibutions) must occu within one yea following end of plan yea. A plan may coect these excess contibutions by making coective distibutions of the excess contibutions and elated eanings. If this is done within 2½ months afte the end of the plan yea (within six months afte the end of the plan yea fo cetain EACA plans), the plan sponso will avoid paying a 10% excise tax to the IRS on the amount of the excess contibutions. Coective distibutions of excess contibutions ae taxable in the yea distibuted. Note that excess contibutions can be echaacteized as afte-tax contibutions only duing the peiod 2½ months following the end of the end of the given plan yea (o duing the six months following the end of the plan yea fo cetain EACA plans). Plan sponsos may make Qualified Nonelective Contibutions (QNECs) o Qualified Matching Contibutions (QMACs). Howeve, it is vitually impossible to use these coective contibutions when the pio yea Non-highly compensated employee (NHCE) ADP is used. Note: Plans that allow fo catch-up contibutions must eclassify potions of the excess as catch-up contibutions fo eligible employees. 13

16 INTERNAL REVENUE SERVICE (CONTINUED) Statu Plan Item Action/Suppot When Due DC (3) Excess Aggegate Contibutions (401(m) ACP). Plan sponsos of non-electing 401(k) chuch plans may need to test employe matching and paticipants afte-tax contibutions and make the appopiate coections fo all excess contibutions. The Actual Contibution Pecentage (ACP) test and coective action do not apply to plans that satisfy the equiements of a taditional safe habo o QACA plan design. Plan-yea test peiod-distibution (fofeitue of nonvested matching contibutions) must occu within one yea following end of plan yea. A plan may coect these excess aggegate contibutions by making coective distibutions of the excess amounts and elated eanings. If this is done within 2½ months afte the end of the plan yea fo cetain EACA plans, the plan sponso will avoid paying a 10% excise tax to the IRS on the amount of the excess aggegate contibutions. Coective distibutions of excess aggegate contibutions ae taxable in the yea distibuted. Plan sponsos may make Qualified Nonelective Contibutions (QNECs) o Qualified Matching Contibutions (QMACs). Howeve, it is vitually impossible to use these coective contibutions when the pio yea NHCE ACP is used. DC 403(b) (4) Excess Annual Additions (Fo 2017: the lesse of 100% of compensation o $54,000.) Plan sponsos ae esponsible fo monitoing Code Section 415 Limits. Plan Sponsos must povide Pudential with diection to distibute excess annual additions. Limitation-yea test peiod. Coection method may include efunding to paticipants, o emoving fom paticipants accounts using as contibution cedit. Coections should be completed as soon as possible. 14

17 INTERNAL REVENUE SERVICE (CONTINUED) Statu Plan Item Action/Suppot When Due DB DC Advance Detemination (1) Fom 5300 to equest a detemination lette fo qualification of a plan and the exempt status of any elated tust. Plan sponsos must file the fom with the IRS. Pudential pepaes a completed fom fo defined benefit plan sponsos who elect ou Plan Document Sevices. Pudential package fo defined contibution clients who elect ou Plan Document Sevices. In 2015, the IRS announced changes to the detemination lette pogam fo individually designed plans. Beginning Januay 1, 2017, plan sponsos will only be allowed to submit equests fo detemination lettes at initial plan adoption, upon plan temination, and othe specific cicumstances detemined by the IRS. Fo moe infomation on the detemination lette pogam, see Pudential s Pension Analyst fom August 2016, titled, IRS announces changes to detemination lette pogam DB DC (2) Fom 5310 to apply fo a detemination upon plan temination unde Code Section 401(a). Plan sponsos should file this fom with the IRS. The late of: (i) one yea fom the effective date of the teminations; o (ii) one yea fom the date on which the action teminating the plan is adopted. Howeve, in no event can the application be filed late than 12 months fom the date of distibution of substantially all plan assets in connection with the temination of the plan. DB DC (3) Fom 8717 (Use Fee) to be attached to detemination lette filing. Plan sponsos must file this fom along with Fom 5300 o Fom 5310 with the IRS. See infomation unde Advance Detemination. 15

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20 280 Tumbull Steet Hatfod, CT pudential.com The Pension Analyst is published by Pudential Retiement, a Pudential Financial business, to povide clients with infomation on cuent legislation and egulatoy developments affecting qualified etiement plans. This publication is distibuted with the undestanding that Pudential Retiement is not endeing legal advice. Plan Sponsos should consult thei attoneys about the application of any law to thei etiement plans. Febuay 2017 Compliance Checklist 2017 Pudential s Pension Analyst Pudential Retiement 2017 Pudential Financial, Inc. and its elated entities. Pudential, the Pudential logo, the Rock symbol, and Bing You Challenges ae sevice maks of Pudential Financial, Inc. and its elated entities, egisteed in many juisdictions woldwide. egisteed in many juisdictions woldwide. RSGDRE10 Pinted 02/2017