401(k) True-Up Contributions for Tax-exempt Co-ops Due May 16

If your cooperative is tax-exempt, May 16 is your tax filing deadline (unless you file an extension). It is also the due date for 401(k) Pension Plan true-up contributions. By now, you should have reviewed each participant’s 401(k) match for 2015. If a participant did not receive their full match, sending a true-up contribution by your tax filing deadline is the final compliance step. This helps ensure that your employees get the correct and full employer match as described in your adoption agreement, and it also supports accurate nondiscrimination testing.

The deadline for taxable co-ops was March 15 (unless you filed an extension). If you missed the March 15 deadline but still need to send true-up contributions, please send them right away and notify the benefits compliance team that you’ve sent them.

Calculating match amounts
Matching contribution calculations are usually easy to calculate. But they can be more complex for certain employees who terminated employment, took a hardship distribution, came on or off of disability, or changed their deferral rates during the year. For this reason, pay special attention to employees who experienced these events during 2015, and don’t forget to review their employer matching amount.

For examples of how to calculate employer matching contributions and send true-up contributions to NRECA, see the resource article on the Employee Benefits website.

If you have specific questions about calculating the employer match or true-up contributions, contact the benefits compliance team at 866.673.2299, option 7, or pension.compliance@nreca.coop.