Reminder: 401(k) True-Up Contributions Due May 15 for Tax-Exempt Co-ops
If your cooperative is tax-exempt and you have 401(k) Pension Plan participants who need a true-up employer contribution for 2024, send those true-up contributions to NRECA by May 15, which is the due date (without extension) to file IRS Form 990.
Ensuring each participant has the correct annual employer contribution means that you are complying with your plan’s elections. It also leads to accurate nondiscrimination testing, which is currently underway for the 2024 plan year.
Using the formula in your plan adoption agreement, review the 401(k) employer contributions you made for each participant during 2024. Follow the instructions on the Employee Benefits website. In addition to active employees, also review the annual employer contribution for employees who:
- terminated during the year and are no longer on your payroll,
- took a hardship distribution,
- moved on or off disability, or
- changed deferral rates during 2024.
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 for any individual, please send them right away and notify the benefits compliance team that you’ve sent them.
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.