As an employer that offers your employees a qualified retirement plan such as a 401(k) plan, you are required to follow IRS Form 5500 regulations. These are mandated under the federal Employee Retirement Income Security Act (ERISA), and meant to ensure that employer-sponsored retirement plans follow procedures that protect the rights and benefits of plan participants.
Among the many Form 5500 line items, plan sponsors must report late deposits for employee deferrals to the plan. ERISA regulation standards require plan sponsors to deposit employees' salary or wage deferrals into their accounts as soon as administratively feasible, but no later than the 15th business day of the month following the month in which the contributions occurred. However, this timeframe may be shortened depending on your payroll frequency. The penalties for missing this fiduciary deposit deadline can be steep. In addition, reporting a late deposit increases the odds of an audit – which could result in increased costs and administrative burdens.
Solution: MAGII Pension Services, LLC, your local retirement plan experts, offer an integrated solution that can help automate the Form 5500 employee deferral and retirement plan deposit transactions, which can ease considerable burden on you and your staff.
Mark Gajowski II is scheduling a 30-minute meeting with businesses like yours over the next few weeks. Please let us know what date and time work best for you to meet to discuss the many advantages of working together. Schedule Today