The Surface Transportation and Veterans Health Care Choice Improvement Act of 2015

Solo 401k Plan

The Surface Transportation and Veterans Health Care Choice Improvement Act of 2015 (H.R. 3236), signed by President Obama on July 31, 2015, extends the due date for many tax returns.

Among those of importance to retirement plans, the bill provides that the maximum extension for the returns of employee benefit plans filing Form 5500 shall be an automatic 3 1⁄2-month period ending on November 15 for calendar year plans. (edit-- new dates reverted back to original Oct 15th)In addition, the maximum extension for the returns of organizations exempt from income tax filing Form 990 (series) shall be an automatic 6-month period ending on November 15 for calendar year filers.

Solo 401k Plan: Your Opportunity for Checkbook Control of Your Future

Solo-k Plan

After December 31, 2016, the rules in Treasury Regulation 1.401(b)-1 will determine the deadline for adopting legally required plan amendments. 

The extended deadline to adopt plan amendments required to maintain a retirement plan’s tax qualified status no longer applies.  This means that plan sponsors no longer have until the end of the remedial amendment cycle to adopt an amendment to correct a legally required plan provision. 

  Instead, for single-employer plans, Treasury Regulation 1.401(b)-1 generally  requires a plan to be amended for a legally required provision by the later of:

          A.   the last day of the plan year in which the legally required provision became effective with respect to the plan, or  

          B.   the plan sponsor’s income tax return filing deadline (including extensions) for the tax year in which the legally required provision became effective with respect to the plan. 

Plan sponsors should ensure that any amendments required in connection with determination letters recently issued by the IRS have been adopted timely and dated accordingly.

Solo 401k Plan: Your Opportunity for Checkbook Control of Your Future