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

If your cooperative is tax-exempt, remember to send any needed true-up contributions for participants in your 401(k) Pension Plan to NRECA by May 15 (or by your extended tax filing deadline).

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.

Providing the correct employer contribution for each participant ensures that you are complying with your plan elections and facilitates accurate nondiscrimination testing, which is currently underway.

True-up reminders:

• First, review the 401(k) employer contributions you made for each participant during 2018. Follow the review and true-up instructions in the November, 2018 Benefits Bulletin (see the article titled Two Annual Self-review Tasks Worth the Time!)
• Pay special attention to anyone who terminated employment, took a hardship distribution, moved on or off of disability or changed their deferral rates during 2018. It can be easy to overlook employees who terminated during 2018 and are no longer on your payroll, so make a note to include and review their employer contributions.
• Send a true-up contribution by May 15 for anyone who did not receive the correct employer contribution amount, as calculated according to the formula in your plan adoption agreement.

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.