2016 Income Deferral Election Deadline Reminder for Top Hat Plans

Take action to notify all Top Hat Plan participants that December 31, 2015 is the deadline for making 2016 income deferral elections. Internal Revenue Service rules do not permit 2015 plan participants to begin deferrals or change the amount of deferrals for 2016 after the deadline. This rule applies to both employee and director plans.

Participants’ current elections remain in effect from year-to-year unless they submit changes in writing to your cooperative’s Top Hat Plan’s administrator. Keep an original copy (complete with signatures) of all deferral election forms on file in the co-op’s records as the U.S. Department of Labor may request copies of this document.

Looking ahead
Newly eligible employees or directors who elect to participate in the Top Hat Plan can submit their deferral elections within 30 days of when they begin providing services to your co-op.

Not sure of your co-op’s tax status?
Your co-op is taxable if it files IRS Form 1120, U.S. Corporation Income Tax Return. If your co-op files IRS Form 990, Return of Organization Exempt from Income Tax, this message does not apply. Your accounting department can tell you which form your co-op files.

Questions?
Please contact the Deferred Compensation Program team by email at deferredcomp@nreca.coop or by phone 703.907.6375.