End of Year Retirement Plan Checklist: October -December Compliance Guide

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As we approach the final quarter of the year, it’s crucial to stay on top of important retirement plan deadlines to ensure compliance with the U.S. Department of Labor and IRS regulations. From timely deposits to participant notices, adhering to these deadlines will help keep your plan in good standing. Here’s a month-by-month guide to help you navigate the final months of 2024.


OCTOBER: Payroll and Enrollment Checks

Audit Payroll and Plan Deposits

Ensure that all third-quarter payrolls and plan deposit dates comply with the U.S. Department of Labor’s rules. This means verifying the timely deposit of participant contributions and loan repayments to avoid penalties.

Enrollment Follow-Up

Employees who became eligible for your retirement plan between July 1 and September 30 should have received and returned their enrollment forms. If any forms are missing, this is the time to follow up to avoid compliance issues.

Safe Harbor Notices

If you offer a calendar-year safe harbor plan, you must issue the required notices to employees during October or November. These notices are critical as they must be provided within 30–90 days of the beginning of the plan year. Additionally, if your plan includes features like an Eligible Automatic Contribution Agreement (EACA), Qualified Automatic Contribution Agreement (QACA), or Qualified Default Investment Alternative (QDIA), make sure the appropriate notices are distributed during this time.

NOVEMBER: Preparation and Communication

Plan Announcements

Start preparing announcements to educate employees on the advantages of your retirement plan and any upcoming changes that will take effect in January. Communication is key to ensuring employees understand and appreciate their benefits.

Encourage Address Updates

With Form 1099-R for reportable transactions set to be mailed in January, now is a good time to run a campaign encouraging participants to update their mailing addresses to avoid missing documents.

Update Enrollment Materials

Verify that all enrollment materials, fund prospectuses, and other plan-related information provided to employees are current. These materials should reflect any changes in the plan and align with regulatory requirements.

Quarterly Statements

Within 45 days of the end of the last quarter, distribute the quarterly benefit and disclosure statements to plan participants. This should include a detailed breakdown of plan fees and expenses charged to individual accounts during the prior quarter.

Annual Plan Notices

Prepare and distribute any necessary annual plan notices, including 401(k) safe harbor notices, QDIA annual notices, and automatic enrollment/default investment notices. These notices must be sent at least 30 days before the end of the plan year.

DECEMBER: Year-End Preparations

Year-End Compliance Testing

Begin preparing to send year-end payroll and updated census data to the plan’s recordkeeper in January for year-end compliance testing. This is essential for calendar-year plans and ensures that your plan is in line with regulatory testing requirements.

Distribution Options for Terminated Participants

Verify that participants who left the company during the second half of the year have selected a distribution option for their account balance and returned the necessary forms.

Plan Operations Review

Conduct a thorough review of plan operations to identify any possible Employee Retirement Income Security Act (ERISA) or tax-qualification violations. If any issues are discovered, it might be necessary to use an IRS or U.S. Department of Labor self-correction program to remedy them before they become a larger issue.

By following these monthly action items, you can ensure that your retirement plan remains compliant and that participants are well-informed and supported. Staying proactive in the final quarter helps avoid last-minute stress and ensures a smooth transition into the new year.