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Dedicated Team of Specialists

Member of the American Institute of Certified Public Accountants MC & J  and registered with the Public Company Employee Benefit Plan Accounting Oversight Audit Quality Center AICPA Board

CPA

Top 15 Accounting Firm in Houston

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2012 Reporting and Disclosure Calendar for Benefit Plans Every retirement plan administrator knows that the year is full of various compliance deadlines imposed on these programs by the Department of Labor (DOL), Internal Revenue Service (IRS), and other government agencies under the Employee Retirement Income Security Act of 1974, as amended (ERISA). These deadlines can have an impact on the smooth operation of a plan and more significantly, a missed deadline can mean possible plan failures and/or penalties. The McConnell & Jones calendar provides general information about key dates and deadlines and is not a complete list of regulatory requirements. It is also not intended to constitute the rendering of professional advice. Plan sponsors are advised to obtain professional guidance for application to specific circumstances. Notes: The per-participant flat-rate premium for plan year 2012 is $35 for single-employer plans and $9 for multi-employer plans (both unchanged from plan year 2011). By law, the premium rates are adjusted for inflation each year based on changes in the national average wage index. Each year, the IRS adjusts the limits for retirement plan contributions to reflect price and wage inflation. For 2012, the key retirement plan limits are: (1)

$17,000 in 2012 for the elective deferral (contribution) limit for employees who participate in 401(k), 403(b) and most 457 plans. This is an increase from the $16,500 limit in 2011; and,

(2)

$5,500 up to a maximum of $22,500 for the catch up contribution limit for those employees age 50 and over. This remained unchanged from 2011.

MJ

McConnell & Jones llp

CERTIFIED PUBLIC ACCOUNTANTS


El Capitan, Yosemite National Park Captured reflection of El Capitan in the Merced River in winter in Yosemite National Park. Photograph by Jean Slavin, My Shot

Source: National Geographic’s ‘Best of 2011’

notes


January 2012 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31

17

Form 8955-SSA for Plan Year (PY) 2009 filings and thereafter. The due date for filing the 2009 and 2010 Forms 8955-SSA is the later of (1) January 17, 2012 or (2) the due date that generally applies for filing the PY2009 and PY2010 Form 8955-SSA for the 2010 plan year. The January 17, 2012 due date may not be extended by filing Form 5558. Also provide a notice describing the amount of the vested accrued benefit at normal retirement age to terminated employees who were reported on IRS Form 8955-SSA for PY2009 and PY2010.

31

Many record keepers require participant data for average deferral percentage (ADP)/average contribution percentage (ACP), top heavy, and 402(g) compliance testing to be returned by this date. Form 1099-R (Distribution from Pensions, Annuities, Retirements on Profit-Sharing Plans, IRAs, Insurance Contracts, etc.) due to participants to report 2011 distributions. Form 945 (Annual Return of Withheld Federal Income Tax) is due to IRS. Submit determination letter for individually designed plan documents. The year of submission is determined by the last digit of Employer Identification Number (EIN). For 2012, this applies to plan sponsors with EINs ending in 1 or 6.

MJ

McConnell & Jones llp

CERTIFIED PUBLIC ACCOUNTANTS


Lemurs, Madagascar Von der Decken’s sifakas appear right at home in their karst home in western Madagascar. These lemurs live among the unusual pinnacles of the Tsingy de Bemaraha, which started to form 1.8 million years ago as groundwater dissolved and shaped the porous limestone. Photograph by Stephen Alvarez, National Geographic Source: National Geographic’s ‘Best of 2011’

notes


February 2012 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29

29

Form 1-ES Estimated Premium Payment (flat-rate premium for plans with >500 participants) due to Pension Benefit Guaranty Corporation. Note: This is due by the last day of the second month in the premium payment year. Form 1099-R for 2009 distributions due to IRS if not filed electronically. Forms W-2 (Wage and Tax Statement) and W-3 (Transmittal of Wage and Tax Statement due to IRS.

Be aware that... Extensions of time to file the Form 5500 series beyond the Form 1 filing deadline do not extend the filing due date for PBGC’s forms.

MJ

McConnell & Jones llp

CERTIFIED PUBLIC ACCOUNTANTS


Penstemons, Tahoe National Forest A field of penstemons surround burnt-out tree trunks in Tahoe National Forest, Nevada. Photograph by Raymond Gehman, National Geographic

Source: National Geographic’s ‘Best of 2011’

notes


March 2012 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31

1

Information concerning compliance by multiple employer welfare arrangements (MEWAs) with the Health Insurance Portability and Accountability Act of 1996 (HIPAA), the Mental Health Parity Act of 1996, the Newborns’ and Mothers’ Health Protection Act of 1996 and the Women’s Health and Cancer Rights Act of 1998 is due to the DOL on March 1 (or next business day) following each calendar reporting year. A one-time, 60-day automatic extension is available.

15

ADP/ACP corrective distributions of excess contributions and earnings due to participants. Forms 1042-S and 1042 due to IRS to report retirement plan distributions made to nonresident aliens and income tax withheld from distributions made to nonresident aliens. 2011 employer profit sharing and match contributions due for plans with December 31 fiscal year-end in order to take tax deduction (with no corporate tax extension). Application of Waiver for Minimum Funding Standard for defined benefit (DB) and money purchase pension (MPP) plans (due no later than the 15th day of the third month after the close of the plan year for which the waiver is requested).

30

Form 11-K, Annual Reports of Employee Stock Purchase Savings and Similar Plans pursuant to Section 15(d) of the Securities Exchange Act of 1934 due to SEC for non-ERISA plans with December 31 plan year-end.

MJ

McConnell & Jones llp

CERTIFIED PUBLIC ACCOUNTANTS


Five Flower Lake, China Verdant trees reflect in the morning waters of Five Flower Lake, colored by mineral deposits and aquatic plant life. Five Flower is one of 118 lakes in Jiuzhaigou Nature Reserve, which came under Chinese protection in 1978. Photograph by Michael Yamashita, National Geographic

Source: National Geographic’s ‘Best of 2011’

notes


April 2012 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30

2

Electronic filing of Form 1099-R for 2011 distributions due to IRS. Note: The deadline is March 31; however, this date falls on a Saturday in 2012.

Initial age 70½ minimum required distributions due to no-longer-active participants who turned age 70½ in 2011. Note: The deadline is April 1; however, this date falls on a Sunday in 2012.

Initial age 70½ minimum required distributions due to active or no-longer-active participants in a qualified plan, 403(b) account, or 457 plan who own more than 5% of the organization sponsoring the plan. Note: The deadline is April 1; however, this date falls on a Sunday in 2012.

Extended deadline for service providers to provide required disclosures to plan fiduciaries as required by ERISA section 408(b) (2) for calendar year plans. Note: The deadline is April 1; however, this date falls on a Sunday in 2012.

17

402(g) distributions of excess deferral amounts due to participants. Form 990-T (Exempt Organization Business Income Tax Return) due to IRS to report gross unrelated business income of $1,000 or more for plans with a December 31 plan year-end. Note: The deadline is April 15; however, this date falls on a Sunday in 2012 and Emancipation Day, a holiday observed in the District of Columbia, falls this year on Monday, April 16, 2012.

30

Annual Funding Notice to participants, beneficiaries, and labor organizations representing participants from plan sponsors of single and multi-employer defined benefit (DB) pension plans. Note: Small plans (covering fewer than 100 participants) must provide the notice by the filing due date of the plan’s Form 5500.

MJ

McConnell & Jones llp

CERTIFIED PUBLIC ACCOUNTANTS


Cave Diving, Yucatan Peninsula “I have been a cave diver since 1997, and I’m amazed by the beauty you find in the cenotes of the Yucatan Peninsula, Mexico. They are spectacular in many ways, but there is a more subtle beauty hidden in these natural wonders... unique colors and details not easily spotted except when diving or snorkeling in them.” Photograph by Christian Vizl Source: National Geographic’s ‘Best of 2011’

notes


May 2012 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31

15

Forms 990 and 990-EZ (Annual Return of Organization Exempt from Income Tax) - IRC 501(c) due to IRS for plans with December 31 year-end. Use Form 8868 to request a 90-day extension.

31

The final transition rule under ERISA section 404(a) provides the initial disclosures to participants (both existing and newly eligible) must be furnished no later than either 60 days after the plan’s applicability date or 60 days after the effective date of the ERISA section 408(b)(2) regulation. The rule is applicable for plan years beginning on or after November 1, 2011. For calendar year plans, the initial disclosures will be required no later than May 31, 2012.

Be Aware That... The Summary Plan Description (SPD) should be made available automatically for new plans within 120 days after effective date or date of adoption of plan, whichever is later; for new participants the due date is within 90 days of eligibility; for covered participants and beneficiaries and requests from the DOL, within 30 days of request. The Pension Protection Act of 2006 requires a sponsor of a defined pension plan that maintains an intranet website for the purpose of communicating with employees (and not the public) to post portions of the defined benefit plan’s Form 5500 on the intranet. This new requirement first applied to the 2008 Form 5500.

MJ

McConnell & Jones llp

CERTIFIED PUBLIC ACCOUNTANTS


Nicoya Peninsula, Costa Rica Building clouds and a setting sun reflect in tide pools on Costa Rica’s Nicoya Peninsula offering tranquil beauty that is characteristic of this stable Central American country. Photograph by Patrick di Fruscia

Source: National Geographic’s ‘Best of 2011’

notes


June 2012 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30

28

Form 11-K, Annual Reports of Employee Stock Purchase, Savings and Similar Plans Pursuant to Section 15(d) of the Securities Exchange Act of 1934 due to SEC for ERISA plans with December 31 plan year-end.

Be Aware That... Qualified default investment alternative (QDIA) notice for plans that choose to use a QDIA must be provided to participants and beneficiaries 30 days prior to initial investment. Notice to participants of qualified automatic contribution arrangement (QACA) or qualified eligible contribution arrangement (QECA) and the ability to opt out must be provided to participants 30 days prior to eligibility and annually (for plans with immediate eligibility, notice can be given on or as soon as feasible after eligibility). Notice of failure to meet minimum funding standards for defined benefit (DB) or money purchase pension plans should be furnished within a “reasonable period of time� after the failure. Failure occurs if required contributions are not made within 60 days of the due date.

MJ

McConnell & Jones llp

CERTIFIED PUBLIC ACCOUNTANTS


Hang En Cave, Vietnam Expedition members enter Hang En, a cave tunneled out by the Rao Thuong River. Dwindling to a series of ponds during the dry months, the river can rise almost 300 feet (91 meters) during flood season, covering the rocks where cavers stand. Photograph by Carsten Peter, National Geographic

Source: National Geographic’s ‘Best of 2011’

notes


July 2012 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31

2

Process corrective distributions for failed ADP/ACP test from plan with EACA (Eligible Automatic Contribution Arrangement) without 10% excise tax. Note: The deadline is June 30; however, this date falls on a Saturday in 2012.

30

Summary of Material Modifications due to participants for plans with December 31 plan year-end (due no later than 210 days after the end of the plan year in which the plan change is adopted). Note: The deadline is July 28; however, this date falls on a Saturday in 2012.

31

Form 5330 used to report excise taxes related to employee benefit plans due to IRS for plans with December 31 plan year-end. Form 5500 due to DOL under EFAST2 for plans with December 31 plan year-end (due seven months after plan year-end). Form 8955-SSA due to IRS for plans with December 31 plan year-end (due seven months after plan year-end). Provide a notice describing the amount of the vested accrued benefit at normal retirement age to terminated employees who were reported on IRS Form 8955-SSA for PY2011. Form 5558 Application for Extension of Time to File Certain Employee Plan Returns (used to apply for extension of time to file Forms 5500, 8955-SSA or 5330) is due to IRS for plans with December 31 plan year-end.

MJ

McConnell & Jones llp

CERTIFIED PUBLIC ACCOUNTANTS


Volcano, Tanzania A camera’s long nighttime exposure reveals the red glow of lava spilling from Mount Ol Doinyo Lengai in Tanzania’s Rift Valley. The volcano’s lava has the consistency of olive oil. Photograph by Olivier Grunewald

Source: National Geographic’s ‘Best of 2011’

notes


August 2012 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31

14

Provide initial quarterly participant fee disclosure statement pursuant to new participant fee disclosure regulations issued under ERISA section 404(a).

15

Form 990 due to IRS (extended deadline for plans with December 31 plan year-end and have filed Form 8868). The Form 990 can be extended for another 3 months if another Form 8868 is filed by this date.

Be Aware That... Notice of funding waiver application for defined benefit (DB) or money purchase pension (MPP) plans must be provided when an employer requests a waiver of the minimum funding requirement. Notice of such must be provided to plan participants, beneficiaries and alternate payees within 14 days prior to the date of such application. Notice of suspension of benefits for defined benefit (DB) plans (if plan suspends benefits for retirees who return to work or who keep working past retirement age) must be provided in the first calendar month or payroll period for which benefit payments are suspended. If a retirement plan offers a qualified pre-retirement survivor annuity (QPSA), notice must be provided to plan participants between first day of plan year in which participant reaches age 32 and last day of plan year in which participant reaches age 35. If participant is hired after age 35, this notice is due within one year of hire.

MJ

McConnell & Jones llp

CERTIFIED PUBLIC ACCOUNTANTS


Lightning, Dubai In Dubai, natural and man-made electricity illuminate the night. As jagged needles of lightning appear to rend the sky above it, the Burj Al Arab Hotel with its landmark sail-shaped, 1,053-foot-tall profile glows green on the edge of the Persian Gulf. Photograph by Maxim Shatrov, My Shot

Source: National Geographic’s ‘Best of 2011’

notes


September 2012 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30

17

Required minimum funding contribution is due for money purchase pension (MPP), target benefit, defined benefit (DB) plans (8½ months after plan year-end) and 2011 employer profit-sharing and match contribution for those sponsors that filed a corporate tax extension. Note: The deadline is September 15; however, this date falls on a Saturday in 2012.

30

Complete the 2012 actuarial valuation and certification of the final AFTAP (requiring sponsor election of the 2012 plan year’s interest rate and asset method), unless the AFTAP was “range” certified. If the AFTAP is not certified by this date, the AFTAP is deemed to be less than 60% for the remainder of the plan year.

Be Aware That... As a service to plan administrators who prepare and submit premium filings, PBGC recently mailed a notice on the upcoming 2011 premium instructions. The notice also includes helpful premium filing reminders.

MJ

McConnell & Jones llp

CERTIFIED PUBLIC ACCOUNTANTS


Autumn Landscape, Adirondacks Sunlight dapples the shoulders of Algonquin and Wright, two of the range’s peaks that rise above 4,000 feet. Once blighted by logging and industry, the region has undergone a renaissance of woods and waters. Photograph by Michael Melford, National Geographic

Source: National Geographic’s ‘Best of 2011’

notes


October 2012 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31

1

Summary Annual Report due to participants for plans with December 31 plan year-end (due to participants nine months after plan year-end or two months after filing Form 5500, if not extended). Note: The deadline is September 30; however, this date falls on a Sunday in 2012.

3

Notice of qualified automatic contribution arrangement (QACA) and EACA due to participants and each employee eligible to participate for the year. The deadline is typically a period of at least 30 days but no more than 90 days prior for plans with beginning plan year of January 1. 401(k) Plan Safe Harbor notice due to eligible employees. The deadline is typically a period of at least 30 days but no more than 90 days prior for plans with beginning plan year of January 1.

15

Form-1 Annual Premium Payment (due by the 15th day of the ninth full month following the month in which the plan year began) is due to Pension Benefit Guaranty Corporation (PBGC). Schedule A-Single Employer Plan Variable Rate Portion of Premium and Form 1-EZ for flat rate premiums also due to PBGC. Form 5310-A to give notice of Qualified Separate Lines of Business due to IRS. Extended filing deadline for Form 5500 due to DOL under EFAST2 and Form 8955-SSA due to IRS for plans with December 31 plan year-end.

MJ

McConnell & Jones llp

CERTIFIED PUBLIC ACCOUNTANTS


Cotton Grass, Iceland Landmannalaugar region of Iceland. People come to see the colorful rhyolite mountains. Photograph by Jennifer Jesse

Source: National Geographic’s ‘Best of 2011’

notes


November 2012 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30

15

Form 990 due to IRS (extended deadline for plans with December 31 plan year-end and have filed Form 8868 by August 15.

Be Aware That... If a retirement plan offers a qualified joint and survivor annuity (QJSA) notice must be given to plan participants between 30 and 180 days before annuity starting date. DC plans that require investment in company stock must provide a notice of diversification rights at least 30 days prior to the date a participant is eligible to diversify investments. Notice must include explanation of the importance of diversification.

Note: Under the Pension Protection Act of 2006, plans that did not provide for diversification of company stock investments previously must now give participants the option to diversify after three years of service.

MJ

McConnell & Jones llp

CERTIFIED PUBLIC ACCOUNTANTS


Matterhorn Radiant at sunrise, the Matterhorn towers over Riffel Lake near Zermatt, Switzerland. Photograph by Verena Popp-Hackner, Wild Wonders of Europe

Source: National Geographic’s ‘Best of 2011’

notes


December 2012 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31

3

Qualified default investment alternative (QDIA) notice due to all participants and beneficiaries who have been defaulted into a QDIA at least 30 days prior for plans with beginning plan year of January 1. Annual automatic enrollment (AAE) notice (can be combined with QDIA notice) due to employees before the employer enrolls an employee in an EACA or QACA plan. This notice is due at least 30 days, but no more than 90 days for plans with automatic enrollment date of January 1. Note: The deadline is December 2; however, this date falls on a Sunday in 2012.

17

Summary Annual Report due to participants for plans with December 31 plan year-end and have filed Form 5558. Note: The deadline is December 15; however, this date falls on a Saturday in 2012.

31

Process of corrective distributions for failed 2011 ADP/ACP test with 10% excise tax. Correct a failed 2011 ADP/ACP test with qualified nonelective contributions (QNEC). Submit amendment to convert existing 401(k) plan to safe harbor design for next plan year. Submit amendment to remove safe harbor status for next plan year. Amend plan for discretionary changes implemented during plan year (certain exceptions apply, e.g., adding salary deferrals, cutback accrued benefits) Age 70½ required minimum distributions due to participants who have begun receiving distributions. Note: The deadline is December 30; however, this date falls on a Sunday in 2012.

MJ

McConnell & Jones llp

CERTIFIED PUBLIC ACCOUNTANTS


The Employee Benefit Plan Audit Team at McConnell & Jones The Best Never Rest We are leaders in auditing employee benefit plans, and work with both single-employer and multiple-employer plans for large Fortune 500 companies as well as privately owned organizations. Our Employee Benefit Plan Team prides itself on delivering high-quality audits while giving personalized and responsive service. Our team of professionals is dedicated to benefit plan compliance and they take a proactive approach that helps clients meet their filing deadlines and avoid ERISA and/or DOL violations. McConnell & Jones is proud to be among the top 40 accounting firms in the country that audit employee benefit plans and one of the top 20 largest CPA firms based in Houston, Texas.

For additional information: Visit our website: mcconnelljones.com

Wayne McConnell, CPA Rance Buss, CPA

Eric Ernest, CPA, FCCA

Managing Partner

ERISA Compliance Partner

Assurance Director

Mr. McConnell has more than 35 years of auditing and management accounting experience in public accounting and private industry. He has served as lead partner on numerous financial statement audits for employee benefit plans for over 10 years.

Mr. Buss serves as the Audit Partner responsible for directing, managing and coordinating the firm’s dedicated Employee Benefit Plan Assurance and Compliance Services practice. Rance currently serves on an EBPAQC Expert Panel Special Task Force and on the AICPA National Conference on Employee Benefit Plans planning committee.

Mr. Ernest serves as the Employee Benefit Plan Assurance and Compliance Services Practice Director. With more than 20 years experience, Eric provides leadership and technical support to the entire Employee Benefit Plan team and participates in the review and quality assurance process. Eric currently serves on the EBP Advisory Committee of the Maryland Association of CPAs.

wmcconnell@mjlm.com 713.968.1600

rbuss@mjlm.com 713.968.1634

eernest@mjlm.com 202.434.8464

Follow our blog: thebenefitplanauditor.com

MJ

McConnell & Jones llp

CERTIFIED PUBLIC ACCOUNTANTS


Representative Client Listing Baker Botts LLP

BAKER BOTTS LLP

Bechtel Jacobs CenterPoint Energy, Inc. Cooper Industries Duke Energy Dynegy Inc. Energy Futures Holdings

CO

Marathon Oil

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Memorial Hermann Healthcare System

WA N

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PA

C.

RO

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FMC Technologies

NIES,

R O WA N C O M PA N I E S

Newfield Energy Pride International Rice University Riviana Foods Inc.

Energy Future Holdings ____________________________ logos for TXU,Luminant and Oncor below it. Add it to 1) privately held companies column in our capabilities profile 2) to our one page cut sheet

Energy Future Holdings Energy

Luminant

ONCOR

Rowan Companies, Inc. Seahawk Drilling Spectra Energy Stolt-Nielsen S.A. Southern Union Texas Children’s Hospital Waste Management

Texas Children’s Hospital®

® WASTE MANAGEMENT

MJ

McConnell & Jones llp

CERTIFIED PUBLIC ACCOUNTANTS


Wish you could obtain one of these photos as wallpaper for your computer’s desktop? National Geographic’s beautiful photography is available for download as wallpaper from their website: http://photography.nationalgeographic.com/photography/photos/best-wallpapers-2011/


MJ www.mcconnelljones.com www.thebenefitplanauditor.com

Calendar | McConnell & Jones  

ERISA Reporting and Disclosure Calendar for Benefit Plan Administrators