October 24, 2024
Learn more and take action today!
JULY has established key dates to guarantee plan setup during our peak season. These deadlines are intended to ensure we uphold service quality and meet enrollment commitments and regulatory deadlines. We require all completed and signed setup paperwork returned to us by the following dates in order to set up the plan by the end of 2024.
- New or Takeover Plans with 3(16) Services (includes all PEP plans) – November 15, 2024
- Takeover Plans (without 3(16) Services) – December 2, 2024
- New Plans (without 3(16) Services) – December 16, 2024
Remember that for a plan to be safe harbor effective January 1, 2025, a safe harbor notice must be sent generally 30 days prior to the start of the plan. For those using the 30-day requirement, JULY must be notified by November 15, 2024, in order to have the safe harbor notice and plan document prepared and delivered by December 2, 2024. For those electing to use a “reasonable” notice period less than 30 days, the December 2 and December 16 deadlines above apply.
Plan sponsors must sign a plan document by December 31, 2024, if they want deferrals to commence in 2024. Sole proprietors have until April 15, 2025, for deferrals to commence in 2024. Otherwise, the plan sponsor may adopt a plan for 2024 anytime in 2025 before filing their 2024 tax return. If you have questions about the timing, specifically regarding when deferrals can become effective, please reach out to your JULY Sales Consultant.
Now is the time to make the switch! Employers must notify employees by December 1, 2024, that their SIMPLE IRA will be replaced with a 401(k) plan (effective 1/1/2025). 401(k) plans offer several advantages over SIMPLE IRAs:
- The potential to favor owners and key employees
- Larger contribution amounts for employee deferrals (in addition to catch-up and optional employer profit sharing contributions)
- Availability of participant loans
Can’t make the deadline? With SECURE 2.0, mid-year conversions are allowed with certain specific requirements. Learn more about mid-year SIMPLE IRA Conversions here.
