Reminder: Non-Taxable Co-ops Must Send 401(k) True-Up Contributions by May 15

Keep your plan in compliance with your adoption agreement.

Don’t forget to review the 2013 401(k) Pension Plan employer contributions for each employee, and send any needed true-ups before your co-op’s tax return filing deadline. Unless you file an extension, the deadline for non-taxable co-ops is May 15.

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. Also, please notify the benefits compliance team when you’ve sent them.

Depositing timely true-up contributions into employees’ accounts supports accurate nondiscrimination testing for your co-op’s 401(k) Plan. And making sure each employee gets the correct and full employer match keeps your plan in compliance with the matching formula in your adoption agreement.

Calculating match amounts

Usually matching contributions are easy to calculate. However, they can be more complex for employees who terminated employment, took a hardship distribution, came on or off of disability, or changed their deferral rates during the year. Pay special attention to employees who terminated during 2013, and be sure to include them in your review process.

For helpful examples of how to calculate employer matching contributions and information about how to send true-up contributions to NRECA, see the article in the Winter 2013 Benefits Bulletin.

If you have any questions about calculating the employer match or true-up contributions, contact the benefits compliance team at 1.866.673.2299, option 7, or at pension.compliance@nreca.coop.