401(k) True-Up Contributions for Tax-exempt Co-ops Due May 15

If your cooperative is tax-exempt, the due date to send 401(k) Pension Plan true-up contributions to NRECA is May 15 (or your tax filing deadline, if you file an extension). The true-up 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.

True-up reminders:

• If you have not done so already, review each participant’s 401(k) employer contribution for 2017. Instructions are on the Employee Benefits website. As you review participants’ employer contribution calculations, pay special attention to anyone who terminated employment, took a hardship distribution, moved on or off of disability or changed their deferral rates during 2017. Also, be sure to review amounts for employees who terminated during last year so that individuals who are no longer on your payroll are not overlooked.
• Send a true-up contribution by May 15 for anyone who did not receive the full employer contribution amount as described in your plan adoption agreement. This ensures that you are complying with your plan elections and facilitates accurate nondiscrimination testing, which is currently underway.

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.