Administrative guidelines and activity schedule for plan sponsors

Transcription

1 making it personal Administrative guidelines and activity schedule for plan sponsors every step of the way Guidelines to assist you with plan administration Products and financial services provided by American United Life Insurance Company, a OneAmerica company

2 What makes us different is our commitment to our stakeholders. As a member of a mutual organization, we are accountable to those we serve. We listen to our clients and strive to find individualized solutions to their needs. We re making it personal every step of the way. Products and financial services provided by American United Life Insurance Company, a OneAmerica company

3 This booklet provides a summary of administrative topics for your review. Are you administering your plan properly? Abbreviations and acronyms Eligible to establish the plan type Written plan document requirements Operating plan in compliance with document Plan covered by a fidelity bond Universal eligibility rule for elective deferrals Controlled groups Coverage and nondiscrimination rules Annual additions Top-heavy Elective deferral limits Catch-up rules Loan administration Hardship distribution rules Rollover rules Transfers and exchanges Timing of Notices, disclosures and reports Form 5500 filing and Form 8955-SSA Activity schedule

4 Are you administering your plan properly? Plan administrators should periodically review the following areas of plan operations to ensure compliance with retirement plan laws and regulations. The Internal Revenue Service (IRS) routinely publishes informational pieces including tips, sample questions that an auditor would ask during an examination and the most frequent operational errors found during audits. This guide includes a schedule of important dates and a chart by plan type that outlines areas of plan operation that may be included for review during an examination by the IRS or Department of Labor (DOL). This useful at a glance summary outlines various aspects of plan administration that plan sponsors should check, verify or complete on a regular basis to ensure compliance. The following reference materials are available on eretirement-plan Sponsor under the Year End Services Center at Census instructions Year End Compliance Information Compliance Testing Overview 5500 Overview Note: If you have questions or concerns about whether or not you have been operating your plan in accordance with any of the areas indicated, please contact your plan services consultant. The information herein is for general information only and is not intended to provide specific advice or recommendations for any individual or entity. Nothing herein constitutes or should be construed as a legal opinion or advice. Plan sponsors should consult their own attorney, accountant, financial or tax advisor or other planner or consultant with regard to their situation. Securities offered through OneAmerica Securities, Inc., member FINRA, SIPC, 433 N. Capitol Ave., Indianapolis, IN 46204, OneAmerica Securities, Inc. is a wholly owned subsidiary of American United Life Insurance Company. We encourage you to take advantage of the Plan Admin Manual, which can be found under the Administration tab of esponsor at 4

5 Abbreviations and acronyms : Section ACA: Automatic Contribution Arrangement ACP: Actual Contribution Percentage ADP: Actual Deferral Percentage DOL: Department of Labor EACA: Eligible Automatic Contribution Arrangement ERISA: Employee Retirement Income Security Act of 1974 HCE: Highly Compensated Employee IRC: Internal Revenue Code IRS: Internal Revenue Service NHCE: Non-Highly Compensated Employee QACA: Qualified Automatic Contribution Arrangement QDIA: Qualified Default Investment Alternative QMAC: Qualified Matching Contribution QNEC: Qualified Non-Elective Contribution RMD: Required Minimum Distribution 5

6 Administrative guidelines Eligible to establish the plan type Corporations, sub-chapter S, self-employed, sole proprietorships, partnerships, non-governmental tax-exempt entities, churches, governmental entities. Corporations, sub-chapter S, self-employed, sole proprietorships, partnerships, non-governmental tax-exempt entities, churches, governmental entities. Corporations, sub-chapter S, self-employed, sole proprietorships, partnerships, nongovernmental taxexempt entities, churches. IRC 501(c)(3) organization (e.g., non-governmental tax-exempt entities), schools, churches, governmental entities. IRC 501(c)(3) organization (e.g., non-governmental tax-exempt entities), schools, churches, governmental entities. Governmental entities, nongovernmental taxexempt employers. Written plan document requirements met Plan must have a written plan document that is updated to reflect current legislation. Plan must have a written plan document that is updated to reflect current legislation. Plan must have a written plan document that is updated to reflect current legislation. Final 403(b) regulations require even those plans that are exempt from Title I (generally plans that either contain only elective deferrals or are maintained by governmental or church employers) to adopt a plan document. Plan must have a written plan document that is updated to reflect current legislation. Plan must have a written plan document that is updated to reflect current legislation. 6

7 Operating plan in compliance with document Must operate your plan in accordance with the plan document. The plan document defines all terms of the plan including the calculation of employer, determination of eligibility and the definition of compensation for nondiscrimination testing, etc. Must operate your plan in accordance with the plan document. The plan document defines all terms of the plan including the calculation of employer, determination of eligibility and the definition of compensation for nondiscrimination testing, etc. Must operate your plan in accordance with the plan document. The plan document defines all terms of the plan including the calculation of employer, determination of eligibility and the definition of compensation for nondiscrimination testing and withholding of elective deferrals, etc. Must operate your plan in accordance with the plan document. The plan document defines all terms of the plan including the determination of eligibility and the definition of compensation for nondiscrimination testing and withholding of elective deferrals, etc. Must operate your plan in accordance with the plan document. The plan document defines all terms of the plan including the calculation of employer, determination of eligibility and the definition of compensation for nondiscrimination testing and withholding of elective deferrals, etc. Must operate your plan in accordance with the plan document. The plan document defines all terms of the plan including the determination of eligibility and the definition of compensation for nondiscrimination testing and withholding of elective deferrals, etc. 7

8 Plan covered by a fidelity bond Section 412 of ERISA requires that fiduciaries and other persons who handle or are responsible for the assets of a qualified plan be bonded. Every individual must be bonded for at least 10% of the amount of plan funds he or she handles up to a maximum of $500,000 ($1,000,000 if the plan holds employer securities) but in no case less than $1,000. Section 412 of ERISA requires that fiduciaries and other persons who handle or are responsible for the assets of a qualified plan be bonded. Every individual must be bonded for at least 10% of the amount of plan funds he or she handles up to a maximum of $500,000 ($1,000,000 if the plan holds employer securities) but in no case less than $1,000. Section 412 of ERISA requires that fiduciaries and other persons who handle or are responsible for the assets of a qualified plan be bonded. Every individual must be bonded for at least 10% of the amount of plan funds he or she handles up to a maximum of $500,000 ($1,000,000 if the plan holds employer securities) but in no case less than $1,000. Since plan is not subject to ERISA, a fidelity bond is not required. Section 412 of ERISA requires that fiduciaries and other persons who handle or are responsible for the assets of a qualified plan be bonded. Every individual must be bonded for at least 10% of the amount of plan funds he or she handles up to a maximum of $500,000 ($1,000,000 if the plan holds employer securities) but in no case less than $1,000. Since plan is not subject to ERISA, a fidelity bond is not required. It is important to note that a fidelity bond is not the same as fiduciary liability insurance. Under ERISA, fiduciaries may be personally liable for breach of certain responsibilities and subject to civil court action. With this in mind, you may want to consider fiduciary liability insurance that would provide protection from exposure to: Plan sponsor employer Officers Directors Employees For more information, contact your plan services consultant or agent who has provided fidelity bonding coverage for your plan. See the Fidelity bonding information section of the Census instructions at A DOL approved list of surety companies for ERISA fidelity bonds can be found at: 8

9 Universal eligibility rule for elective deferrals met N/A N/A N/A All employees except: Employees who are eligible for another section 403(b) plan, or for a governmental 457(b) plan of the employer which permits elective deferrals Employees who are eligible to make elective deferrals under a section 401(k) plan Nonresident aliens Students performing services described in IRC 3121(b)(10) Employees who normally work fewer than 20 hours per week; however, exclusion based on a work schedule of fewer than 20 hours per week may not be applied to any employee by a section 403(b) plan that is not subject to ERISA if the employee ever worked more than 1,000 hours in the preceeding employment year or preceeding plan year. All employees except: Employees who are eligible for another section 403(b) plan, or for a governmental 457(b) plan of the employer which permits elective deferrals Employees who are eligible to make elective deferrals under a section 401(k) plan Nonresident aliens Students performing services described in IRC 3121(b)(10), must be permitted to make section 403(b) elective deferrals if any employee of the eligible employer may make elective deferrals. Employees who normally work fewer than 20 hours per week; however, based on a work schedule of fewer than 20 hours per week may not be applied to any employee by a section 403(b) plan that is subject to Title I of ERISA, if the employee ever worked more than 1,000 hours during their employment year or subsequent plan year or determination period. If students or employees who work less than 20 hours per week are excluded, but one of these excluded employees is allowed to make elective deferrals, then all of the employees in that excluded group must be allowed 9 to participate. N/A If a 457(b) plan is sponsored by a non-governmental tax-exempt entity it must be a top hat plan. Governmental plans may be but are not required to be top hat plans. Top hat plans can allow only a select group of management or HCEs to participate.

10 Controlled groups identified and covered or excluded under the plan If two or more organizations are part of a controlled group of businesses, the organizations are treated as a single employer when applying qualified plan requirements such as general qualification, eligibility and coverage, vesting, annual addition limitations and top heavy rules. If two or more organizations are part of a controlled group of businesses, the organizations are treated as a single employer when applying qualified plan requirements such as general qualification, eligibility and coverage, vesting, annual addition limitations and top heavy rules. If two or more organizations are part of a controlled group of businesses, the organizations are treated as a single employer when applying qualified plan requirements such as general qualification, eligibility and coverage, vesting, annual addition limitations and top heavy rules. If two or more organizations are part of a controlled group of businesses, the organizations are treated as a single employer when applying qualified plan requirements such as general qualification, eligibility and coverage, vesting and annual addition limitations. If two or more organizations are part of a controlled group of businesses, the organizations are treated as a single employer when applying qualified plan requirements such as general qualification, eligibility and coverage, vesting and annual addition limitations. If two or more organizations are part of a controlled group of businesses, the organizations are treated as a single employer when applying qualified plan requirements such as general qualification, eligibility and coverage, vesting and annual addition limitations. Coverage and nondiscrimination rules satisfied, HCEs properly identified and refunds returned timely (if applicable) Based on your plan s allocation formula, nondiscrimination testing may be required under IRC 401(a)(4). Based on your plan s allocation formula, nondiscrimination testing may be required under IRC 401(a)(4). N/A N/A Nondiscrimination tests include: ADP (for deferrals including Roth deferrals), ACP (for employee after-tax and match). Based on your plan s allocation formula for employer, nondiscrimination testing may be required under IRC 401(a)(4). Nondiscrimination tests include: ACP (for employee aftertax and match). Based on your plan s allocation formula for employer, nondiscrimination testing may be required under IRC 401(a)(4). 10

11 Coverage and nondiscrimination rules satisfied, HCEs properly identified and refunds returned timely (if applicable) Coverage testing is required for the employer contribution to ensure that a minimum percentage of NHCEs are eligible to receive benefits in relation to the percentage of HCEs eligible to receive benefits. Coverage testing is required for the employer contribution to ensure that a minimum percentage of NHCEs are eligible to receive benefits in relation to the percentage of HCEs eligible to receive benefits. Coverage testing is required for all to ensure that a minimum percentage of NHCEs are eligible to receive benefits in relation to the percentage of HCEs eligible to receive benefits. N/A Coverage testing is required for all except deferrals to ensure that a minimum percentage of NHCEs are eligible to receive benefits in relation to the percentage of HCEs eligible to receive benefits. N/A Plan may require ACP testing if plan requires mandatory employee or has a matching contribution formula tied to participant deferrals in a 403(b) or 457(b) plan. Safe harbor 401(k) plans and plans with a QACA are exempt from ADP and ACP testing if certain conditions are satisfied. 403(b) plans are not subject to the ADP or coverage tests for deferrals because of the universal eligibility rules. See the Compliance Testing Overview at for additional information regarding compliance tests, due dates and correction methods. An employee is considered an HCE if he or she meets any of the following criteria: A more than five-percent owner of the employer (or related employer) at any time during the current or preceding plan year Had compensation from the employer in excess of $115,000 during the preceding year and, if the employer so elected, was in the top-paid group of the employer Consider the following when determining an employee s HCE status: Controlled group and affiliated service group: All employees employed by members of a controlled group, affiliated service group or a group of trades or businesses under common control are treated as employed by a single employer. All employees of the single employer are included for the purposes of determining HCEs. Family members: If an employee is a family member of a more than five-percent owner, then such family member is also considered an HCE. Family members include the spouse, parents, children and grandparents. Family members for this purpose do not include grandchildren, siblings, or in-laws. Please keep in mind that ownership may be attributed from multiple family members. For example, Mary has no direct ownership, her father is a four-percent owner and her husband is a three-percent owner. Therefore, Mary is a seven-percent owner. Top-paid group: If you have made the top-paid group election in your adoption agreement or plan document, employees treated as HCEs because of their compensation are limited to the highest paid 20 percent of all employees of the employer in the preceeding plan year. See the Highly compensated employee (HCE) section of the Census instructions at 11

12 Annual additions limited Test to ensure that the total of each participant s allocated, including forfeitures for the limitation year (generally the same as the plan year) has not exceeded the annual additions limit. Limit is lesser of: 100 percent of 415 compensation or $52,000 Test to ensure that the total of each participant s allocated, including forfeitures for the limitation year (generally the same as the plan year) has not exceeded the annual additions limit. Limit is lesser of: 100 percent of 415 compensation or $52,000 Test to ensure that the total of each participant s allocated, including deferrals, and forfeitures for the limitation year (generally the same as the plan year) has not exceeded the annual additions limit. Limit is lesser of: 100 percent of 415 compensation or $52,000 Test to ensure that the total of each participant s allocated, for the limitation year (generally the same as the plan year) has not exceeded the annual additions limit. Limit is lesser of: 100 percent of 415 compensation or $52,000 Test to ensure that the total of each participant s allocated, including deferrals, and forfeitures for the limitation year (generally the same as the plan year) has not exceeded the annual additions limit. Limit is lesser of: 100 percent of 415 compensation or $52,000 Test to ensure that the total of each participant s allocated, for the limitation year (generally the same as the plan year) has not exceeded the annual additions limit. Limit is lesser of: 100 percent of 415 compensation or $17,500 Special catchup provisions may increase the contribution limit. Employer offset employee deferrals. If a 457(b) plan is combined with a 401(k) or 403(b) plan, separate annual addition limits apply to each plan. See the Compliance Testing Overview at for additional information regarding compliance tests, due dates and correction methods. 12

13 Top heavy satisfied, key employees identified and employer contribution made timely (if applicable) Test to ensure that the account values of key employees are not a disproportionate percentage of the total assets of the plan compared to non-key employees. Disproportionate is defined as more than 60 percent. Test to ensure that the account values of key employees are not a disproportionate percentage of the total assets of the plan compared to non-key employees. Disproportionate is defined as more than 60 percent. Test to ensure that the account values of key employees are not a disproportionate percentage of the total assets of the plan compared to non-key employees. Disproportionate is defined as more than 60 percent. N/A N/A N/A Safe harbor 401(k) plans are exempt from top heavy funding requirements if certain conditions are satisfied. See the Compliance Testing Overview at for additional information regarding compliance tests, due dates and correction methods. An employee is considered a key employee if he or she meets any of the following criteria: An officer having annual compensation greater than $170,000 A more than five-percent owner of the employer (or related employer) A more than one-percent owner of the employer (or related employer) with compensation in excess of $150,000 Consider the following when determining an employee s key status: Controlled group and affiliated service group: All employees employed by members of a controlled group, affiliated service group or a group of trades or businesses under common control are treated as employed by a single employer. All employees of the single employer are included for the purposes of determining the key employee. Family members: If an employee is a family member of a more than five-percent owner, then such family member is also considered a key employee. If an employee is a family member of a more than one-percent owner, then such family member is also considered a key employee if they have compensation in excess of $150,000. Family members include the spouse, parents, children and grandparents. Family members for this purpose do not include grandchildren, siblings, or in-laws. Please keep in mind that ownership may be attributed from multiple family members. For example, Mary has no direct ownership, her father is a four-percent owner and her husband is a three-percent owner. Therefore, Mary is a seven-percent owner. See the Key employee section of the Census instructions at 13

14 Elective deferrals limited and excess deferrals returned timely N/A N/A Ensures that the total of each participant s elective deferrals has not exceeded the calendar year limit. Limit is $17,500. Ensures that the total of each participant s elective deferrals has not exceeded the calendar year limit. Limit is $17,500. Ensures that the total of each participant s elective deferrals has not exceeded the calendar year limit. Limit is $17,500. Ensures that the total of each participant s elective deferrals has not exceeded the calendar year limit. 457(b) plans have their own limit of $17,500. If combined with a 401(k) or 403(b) plan, the limit is $35,000. See the Compliance Testing Overview at for additional information regarding compliance tests, due dates and correction methods. 14

15 Catch-up rules applied properly N/A N/A If the plan allows, participants who are or will become 50 during the calendar year are eligible to make catch-up. Must exceed one of four limits before amounts can be considered catch-up. Limit is $5,500. If annuity contract allows, participants who are or will become 50 during the calendar year are eligible to make catchup. Must exceed one of four limits before amounts can be considered catch-up. Limit is $5, (b) plan regulations allow for an additional 15-year catch-up. The 15-year catch-up limit applies only to qualified employees of a qualified organization and provides for an increase of up to $3,000 in the elective deferral limit. If both Age 50 catchup and 15-year catchup allowed, participant must utilize 15-year catch-up first. If the plan allows, participants who are or will become 50 during the calendar year are eligible to make catch-up. Must exceed one of four limits before amounts can be considered catch-up. Limit is $5, (b) plan regulations allow for an additional 15-year catch-up. The 15-year catch-up limit applies only to qualified employees of a qualified organization and provides for an increase of up to $3,000 in the elective deferral limit. If both Age 50 catchup and 15-year catch-up allowed, participant must utilize 15-year catchup first. See the Frequently asked questions (FAQ) section of the Census instructions at Non-governmental tax-exempt top hat 457(b) plan: Age 50 catch-up is not permitted. Governmental 457(b) plan: Age 50 catchup is permitted. Participants who are within three years of the plan s normal retirement age (NRA) may be eligible for a special 457(b) catchup of $17,500. If a governmental 457(b) plan allows both special 457(b) catch-up and age 50 catch-up, a participant wishing to make catch-up must make the greater of the two. If a 457(b) plan is combined with a 401(k) or 403(b) plan, separate catch-up limits apply to each plan. 15

16 Loans administered properly and timely defaulting of loans If a plan allows for loans, it must have procedures that address the following: Conditions under which loans can be obtained Maximum number of loans allowed by a participant If multiple loans allowed, the period of time granted between the issuance of the previous loan and a new loan (e.g., 12 months) Sources available for loans (e.g., rollover) Interest rate on loans Repayment frequency A loan that is in default is generally treated as a taxable distribution from the plan and must be reported so that a 1099 may be issued. If a plan allows for loans, it must have procedures that address the following: Conditions under which loans can be obtained Maximum number of loans allowed by a participant If multiple loans allowed, the period of time granted between the issuance of the previous loan and a new loan (e.g., 12 months) Sources available for loans (e.g., rollover) Interest rate on loans Repayment frequency A loan that is in default is generally treated as a taxable distribution from the plan and must be reported so that a 1099 may be issued. If a plan allows for loans, it must have procedures that address the following: Conditions under which loans can be obtained Maximum number of loans allowed by a participant If multiple loans allowed, the period of time granted between the issuance of the previous loan and a new loan (e.g., 12 months) Sources available for loans (e.g., elective deferrals, rollover, employer match, etc.,) Interest rate on loans Repayment frequency A loan that is in default is generally treated as a taxable distribution from the plan and must be reported so that a 1099 may be issued. Available if provided in written plan document and annuity contract. A loan that is in default is generally treated as a taxable distribution from the plan and must be reported so that a 1099 may be issued. If a plan allows for loans, it must have procedures that address the following: Conditions under which loans can be obtained Maximum number of loans allowed by a participant If multiple loans allowed, the period of time granted between the issuance of the previous loan and a new loan (e.g., 12 months) Sources available for loans (e.g., elective deferrals, rollover, employer match, etc.,) Interest rate on loans Repayment frequency A loan that is in default is generally treated as a taxable distribution from the plan and must be reported so that a 1099 may be issued. Non-govermental tax-exempt top hat 457(b) plan: Loans are not permitted under a non-governmental tax-exempt top hat 457(b) plan. Governmental 457(b) plan: If a plan allows for loans, it must have procedures that address the following: Conditions under which loans can be obtained Maximum number of loans allowed by a participant If multiple loans allowed, the period of time granted between the issuance of the previous loan and a new loan (e.g., 12 months) Sources available for loans (e.g., elective deferrals, rollover, employer match, etc.,) Interest rate on loans Repayment frequency A loan that is in default is generally treated as a taxable distribution from the plan and must be reported so that a 1099 may be issued. 16

17 Hardship distribution rules followed If a plan provides N/A for hardship distributions, it must provide the specific criteria used to make the determination of hardship. The IRS has established reasons that satisfy the safe harbor definition of hardship. These reasons satisfy the immediate and financial need requirement. In addition to following the guidelines regarding what constitutes a hardship, you must demonstrate that you have followed guidelines regarding documentation, ensuring that the amount withdrawn does not exceed the need, obtaining spousal consent and restricting hardship distributions to the sources identified in your adoption agreement. If a plan provides for hardship distributions, it must provide the specific criteria used to make the determination of hardship. The IRS has established reasons that satisfy the safe harbor definition of hardship. These reasons satisfy the immediate and financial need requirement. In addition to following guidelines regarding what constitutes a hardship you must follow guidelines regarding documentation, ensuring that the amount withdrawn does not exceed the need, suspension of elective deferrals (e.g., six months), obtaining spousal consent and restricting hardship distributions to the sources identified in your adoption agreement. Available if provided in written plan document and annuity contract. Reminder: Elective deferrals must be suspended for the period of time outlined in your plan document (e.g., six months). If a plan provides for hardship distributions, it must provide the specific criteria used to make the determination of hardship. The IRS has established reasons that satisfy the safe harbor definition of hardship. These reasons satisfy the immediate and financial need requirement. In addition to following guidelines regarding what constitutes a hardship you must follow guidelines regarding documentation, ensuring that the amount withdrawn does not exceed the need, suspension of elective deferrals (six months or up to one year), obtaining spousal consent and restricting hardship distributions to the sources identified in your adoption agreement. See the Distribution chapter of the Plan Admin Manual on the esponsor website for more information on hardship withdrawals. Under a 457(b) plan, a hardship distribution can only occur when the participant is faced with an unforeseeable emergency. You should retain documentation that demonstrates the need or proof of the unforeseeable emergency. Reminder: Elective deferrals must be suspended for the period of time outlined in your plan document (e.g., six months). 17

18 Rollover rules followed A direct rollover is a payment of an eligible rollover distribution [as defined in IRC 402(c)(2)] from a qualified plan directly to another eligible retirement plan. A direct rollover is a payment of an eligible rollover distribution [as defined in IRC 402(c)(2)] from a qualified plan directly to another eligible retirement plan. A direct rollover is a payment of an eligible rollover distribution [as defined in IRC 402(c)(2)] from a qualified plan directly to another eligible retirement plan. N/A A direct rollover is a payment of an eligible rollover distribution [as defined in IRC 402(c)(2)] from a qualified plan directly to another eligible retirement plan. Non-governmental tax-exempt top hat 457(b) plan: There are no rollover options for a nongovernmental tax-exempt top hat 457(b) plan. A 60-day rollover is the rule that states when a participant withdraws cash or other assets from one eligible retirement plan first they must complete the rollover within 60 days of the date of the distribution. A 60-day rollover may not include aftertax amounts (i.e., nontaxable amounts) unless the receipt plan is an IRA or Roth IRA. A 60-day rollover is the rule that states when a participant withdraws cash or other assets from one eligible retirement plan first they must complete the rollover within 60 days of the date of the distribution. A 60-day rollover may not include aftertax amounts (i.e., nontaxable amounts) unless the receipt plan is an IRA or Roth IRA. A 60-day rollover is the rule that states when a participant withdraws cash or other assets from one eligible retirement plan first they must complete the rollover within 60 days of the date of the distribution. A 60-day rollover may not include aftertax amounts (i.e., nontaxable amounts) unless the receipt plan is an IRA or Roth IRA. A 60-day rollover is the rule that states when a participant withdraws cash or other assets from one eligible retirement plan first they must complete the rollover within 60 days of the date of the distribution. A 60-day rollover may not include aftertax amounts (i.e., nontaxable amounts) unless the receipt plan is an IRA or Roth IRA. Governmental 457(b) plan: A direct rollover is a payment of an eligible rollover distribution [as defined in IRC 402(c)(2)] from a qualified plan directly to another eligible retirement plan. A 60-day rollover is the rule that states when a participant withdraws cash or other assets from one eligible retirement plan first they must complete the rollover within 60 days of the date of the distribution. A 60-day rollover may not include aftertax amounts (i.e., nontaxable amounts) unless the receipt plan is an IRA or Roth IRA. If a plan accepts rollovers, you must demonstrate that you have received a rollover from another eligible retirement plan. 18

19 Transfers and exchanges handled properly N/A N/A N/A The plan must provide for contract exchanges or planto-plan transfers and the transferred interest must be subject to the same or stricter distribution restrictions. Contract exchanges require an information sharing agreement. Both contract exchanges and plan-to-plan transfers require that the participant s accumulated benefits after the exchange or transfer must be equal to what it was before the exchange. The plan must provide for contract exchanges or planto-plan transfers and the transferred interest must be subject to the same or stricter distribution restrictions. Contract exchanges require an information sharing agreement. Both contract exchanges and plan-to-plan transfers require that the participant s accumulated benefits after the exchange or transfer must be equal to what it was before the exchange. N/A Timing of Plans that are subject to the Title I of ERISA must satisfy DOL requirements regarding the timely remittance of employee deferrals, after-tax and participant loan repayments. Plans that are subject to the Title I of ERISA must satisfy DOL requirements regarding the timely remittance of employee deferrals, after-tax and participant loan repayments. Plans that are subject to the Title I of ERISA must satisfy DOL requirements regarding the timely remittance of employee deferrals, after-tax and participant loan repayments. N/A Plans that are subject to the Title I of ERISA must satisfy DOL requirements regarding the timely remittance of employee deferrals, after-tax and participant loan repayments. N/A The DOL regulations regarding the timing of depositing are to ensure that the funds are being invested in the plans rather than remaining in the employer s general corporate funds. The DOL regulations regarding the timing of depositing are to ensure that the funds are being invested in the plans rather than remaining in the employer s general corporate funds. The DOL regulations regarding the timing of depositing are to ensure that the funds are being invested in the plans rather than remaining in the employer s general corporate funds. The DOL regulations regarding the timing of depositing are to ensure that the funds are being invested in the plans rather than remaining in the employer s general corporate funds. See the Timing of and DOL rules section of the Census instructions at 19

20 Notices/disclosures/reports distributed timely Participants (and sometimes beneficiaries) are required to receive notices, reports and/ or disclosures within specified guidelines. Examples include: Summary Annual Report, Summary Plan Description, Summary of Material Modification, individual benefit statement, blackout period notice, Sarbanes-Oxley notice, QDIA notice, participant fee disclosure. Participants (and sometimes beneficiaries) are required to receive notices, reports and/ or disclosures within specified guidelines. Examples include: Summary Annual Report, Summary Plan Description, Summary of Material Modification, individual benefit statement, blackout period notice, Sarbanes-Oxley notice, QDIA notice. Participants (and sometimes beneficiaries) are required to receive notices, reports and/ or disclosures within specified guidelines. Examples include: Summary Annual Report, Summary Plan Description, Summary of Material Modification, individual benefit statement, blackout period notice, safe harbor notice, Sarbanes-Oxley notice, QDIA notice, ACA notice, EACA notice, QACA notice, participant fee. N/A Participants (and sometimes beneficiaries) are required to receive notices, reports and/ or disclosures withinspecified guidelines. Examples include: Summary Annual Report, Summary Plan Description, Summary of Material Modification, individual benefit statement, blackout period notice, safe harbor notice, Sarbanes-Oxley notice, QDIA notice, ACA notice, EACA notice, QACA notice, participant fee disclosure. N/A 20

21 Form 5500 filing and Form 8955-SSA (if applicable) Form 5500 filing and Form 8955-SSA are due by the last day of the seventh month after the end of the plan year unless otherwise extended with a Form 5558, Application for Extension of Time to File Certain Employee Plan Returns. The Form 5500 must be filed electronically with the DOL through EFAST2. The Form 8955-SSA (if applicable) may be filed with the IRS through the IRS FIRE system or mailed to: Department of the Treasury IRS, Ogden, UT Form 5500 filing and Form 8955-SSA are due by the last day of the seventh month after the end of the plan year unless otherwise extended with a Form 5558, Application for Extension of Time to File Certain Employee Plan Returns. The Form 5500 must be filed electronically with the DOL through EFAST2. The Form 8955-SSA (if applicable) may be filed with the IRS through the IRS FIRE system or mailed to: Department of the Treasury IRS, Ogden, UT Form 5500 filing and Form 8955-SSA are due by the last day of the seventh month after the end of the plan year unless otherwise extended with a Form 5558, Application for Extension of Time to File Certain Employee Plan Returns. The Form 5500 must be filed electronically with the DOL through EFAST2. The Form 8955-SSA (if applicable) may be filed with the IRS through the IRS FIRE system or mailed to: Department of the Treasury IRS, Ogden, UT N/A Form 5500 filing and Form 8955-SSA are due by the last day of the seventh month after the end of the plan year unless otherwise extended with a Form 5558, Application for Extension of Time to File Certain Employee Plan Returns. The Form 5500 must be filed electronically with the DOL through EFAST2. The Form 8955-SSA (if applicable) may be filed with the IRS through the IRS FIRE system or mailed to: Department of the Treasury IRS, Ogden, UT Non-governmental tax-exempt top hat 457(b) plan: Exempt from filing as long as the ERISA Reporting and Disclosure Statement claiming the top hat exemption is filed with the DOL. Governmental 457(b) plan: N/A General, minor Form 5500 filing errors that may generate correspondence from the DOL: Failure to sign and date forms Mathematical errors Failure to answer all required questions Failure to attach all required schedules and attachments Beginning balances do not equal prior year ending balances Beginning participant count on Form 5500 does not tie to type of filing (i.e., large or small filer) Late are indicated Reversion of assets are indicated Disclosures on a Form 5500 that may trigger an audit from the IRS or DOL: Low percentage of participants relative to total employees Large losses Large percentage of loans Large drop in plan participants Large amounts of administrative expenses Large percentage of assets identified as other Large amounts of distributions 21

22 The Retirement plan activity schedule is provided to assist you with meeting your fiduciary responsibilities and can be filed in your fiduciary file. 22

23 Activity schedule (Assumes calendar plan year and fical year unless noted) 2013 Activities Date Plan activity Timing November 29, 2013 n Deadline for the submission of distribution forms for 1st year age 70½ RMDs that are due April 1, Deadline for distributing the following annual notices for 2014 to participants: Participant fee disclosures* Safe harbor notices QDIA notices ACA notices EACA QACA Same date for all plan years Month prior to beginning of next plan year *Participants and beneficiaries with the right to direct investment of assets in their account must receive a fee disclosure on or prior to the date they can first direct investments, then annually thereafter. New participant fee disclosures must be distributed days prior to certain changes. December 3, 2013 n AUL will send 2013 annual census notifications to plan administrators. Prior to plan year end December 31, 2013 n Deadline for processing corrective distributions or for making QNECs/QMACs for Plan year end 2012 nondiscrimination (i.e., ADP and/or ACP) test failures. Deadline to sign amendments that must be in place before the beginning of the Plan year end 2014 plan year. n Deadline for making 2013 annual RMDs that are not 1st year distributions. Plan year end 2014 Activities Date Plan activity Timing January 15, 2014 Last week of January n Deadline to remit 2013 employee deferrals to ensure inclusion in (g) deferral limit monitoring. n Deadline for the submission of 2013 census data to ensure completion of all applicable testing by March 14, Same date for all plan years Please see date indicated in your census notification March 3, 2014 March 14, 2014 n Deadline for participants who made 2013 deferrals into another employer s plan to notify the plan administrator of any excess deferrals (deferrals over the calendar year deferral limit) that they want distributed from the plan. n Deadline for completion of required ADP/ACP plan testing for plans without an EACA to avoid IRS 10% excise tax on corrective distributions for failed tests assessed against the employer. n Deadline for filing corporate tax return or filing for an extension and contribution deadline for deductibility purposes for corporations if no filing extension is requested. Same date for all plan years 2½ months after plan year end 2½ months after fiscal year end 23

24 2014 Activities Date Plan activity Timing April 1, 2014 n Deadline to notify AUL of deferrals over the 2013 calendar deferral limit. Same date for all plan years Processing of corrective distributions of excess deferrals must be completed by April 15, n Deadline for processing 1st year RMDs for individuals who turned 70½ during Same date for all plan years 2013 and require an RMD. n AUL will proceed with producing the 2013 annual report if a census is not 3 months after plan year end received. Should you submit a census after the annual report has been processed, the report will automatically be reprocessed and a rework fee will be billed. n Deadline for filing Form 5330, Return of Excise Taxes Related to Employee Benefit 15 months after plan year end Plans, for the 2012 plan year. Form 5330 is used to report and pay excise taxes on excess that occurred in the 2012 plan year (i.e., 10% excise tax on failed ADP/ACP tests). April 15, 2014 n Deadline for processing of corrective distributions for deferral limit failures to Same date for all plan years avoid IRS 50% penalty. n Approximate date AUL will mail Form 5558, Application for Extension of Time To 3½ months after plan year end File Certain Employee Plan Returns, to the IRS for all full service clients for which AUL provides a 2013 Form 5500 or 5500-SF. n Deadline for filing 2013 individual and/or partnership tax returns or filing for an extension and contribution deadline for deductibility purposes for unincorporated entities if no filing extension is requested. 3½ months after plan year end June 30, 2014 n Deadline for completion of required ADP/ACP plan testing for certain plans with an EACA to avoid IRS 10% excise tax on corrective distributions for failed tests assessed against the employer. In order for a plan with an EACA to take advantage of the ability to delay refunds processing until 6 months after the end of the plan year without the 10% penalty, the EACA provisions must apply to all employees, not just new employees. 6 months after plan year end July 29, 2014 July 31, 2014 n Deadline for distributing the Summary of Material Modification (SMM) if the plan was amended in n Deadline for the employer to file the Form 5500, Form 5500-SF and 8955-SSA. You can take advantage of the extended Form 5500 filing deadline of October 15, 2014, that AUL requested for your plan by completing Box D on the Form 5500 or Box C on the Form 5500-SF and Form 8955-SSA. n Deadline for employers to file Form 5330, Return of Excise Taxes Related to Employee Benefit Plans, for excise tax due on nondeductible and prohibited transactions. 210 days after plan year end 7 months after plan year end Last day of the 7th month after the end of the tax year of the employer or other person who must file the return September 15, 2014 September 30, 2014 n For employers who filed corporate income tax extensions, the corporate tax filing due date and deadline for making deductible for n Deadline to distribute the 2013 Summary Annual Report (SAR) unless the Form 5500 filing was extended. 8½ months after plan year end 9 months after plan year end 24

25 2014 Activities Date Plan activity Timing October 15, 2014 n Deadline to correct a 2013 coverage test failure. 9½ months after plan year end n 2013 Form 5500, Form 5500-SF and Form 8955-SSA filing deadline for plans 9½ months after plan year end extended by Form November 17, 2014 n Final deadline for employer to submit census data to ensure completion of 2013 ADP/ACP testing before December 31, days prior to 12 month deadline to complete testing December 1, 2014 n Deadline for the submission of distribution forms for first year age 70½ RMOs that are due April 1, n Deadline for distributing the following annual notices for 2015 to participants: Same date for all plan years Month prior to beginning of next plan year Participant fee disclosures* Safe harbor notices QDIA notices ACA notices EACA notices QACA notices n AUL will send 2014 annual census notification to plan administrators. Plan year end *Participants and beneficiaries with the right to direct investments of assets in their account must receive a fee disclosure on or prior to the date they can first direct investments, then annually thereafter. New participant fee disclosures must be distributed days prior to certain changes. December 15, 2014 December 31, 2014 n Deadline to distribute the 2013 SAR to participants if the Form 5500 filing deadline was extended. n Deadline for processing corrective distributions or for making a QNEC/QMAC for 2013 nondiscrimination test (i.e., ADP/ACP) failures. n Deadline to sign amendments that must be in place before the beginning of the 2015 plan year. n Deadline for making 2014 annual RMDs that are not 1st year distributions. 11½ months after plan year end Last day of plan year following plan year end Last day of plan year Same date for all plan years Unless otherwise noted, the dates reflected in the above plan activity schedule apply to plan years and employer fiscal years beginning January 1. If your plan has an anniversary date other than January 1, please make adjustments to the dates to coincide with your plan year. Under IRC 7503, when a deadline falls on a weekend (i.e., Saturday or Sunday) or a legal holiday, the performance of such act shall be considered timely if completed the next business day; however, corrective distributions should be processed the day before the weekend or legal holiday. 25

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28 Note Group variable annuity contracts are issued by AUL and registered group variable annuity contracts are distributed by OneAmerica Securities, Inc., Member FINRA, SIPC, a Registered Investment Advisor, 433 N. Capitol Ave., Indianapolis, IN 46204, , which is a wholly owned subsidiary of AUL. Neither AUL, OneAmerica Securities, Inc. nor their representatives provide tax or legal advice. For answers to your specific questions please consult a qualified attorney or tax advisor. About AUL Retirement Services American United Life Insurance Company (AUL) is the founding member of OneAmerica and offers a wide range of products and services for retirement plans of individuals and employers. As a leader in the retirement services industry, AUL provides local service through a national network of experienced professionals focusing on the 401(k), 403(b) and 457 markets. About OneAmerica OneAmerica Financial Partners, Inc., headquartered in Indianapolis, Ind., has companies that can trace their solid foundations back more than 135 years in the financial services marketplace. OneAmerica s nationwide network of companies offers a variety of products to serve the financial needs of their policyholders and other customers. These products include retirement plan products and services; individual life insurance, annuities, long-term care solutions and employee benefit plan products. The goal of OneAmerica is to blend the strengths of each company to achieve greater collective results. The products of the OneAmerica companies are distributed through a nationwide network of employees, agents, brokers and other distribution sources that are committed to increasing value to policyholders by helping them prepare to meet their financial goals. American United Life Insurance Company a OneAmerica company One American Square, P.O. Box 368 Indianapolis, IN (317) OneAmerica Financial Partners, Inc. All rights reserved. OneAmerica and the OneAmerica banner are all registered trademarks of OneAmerica Financial Partners, Inc. R /20/13