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Timely Tips: Retirement Deadlines for Small Business Owners

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Our timely tips are a great way to keep up-do-date with retirement deadlines that are important to self-directed IRA holders. Here you will find dates that are important for small business owners who hold the following plans: SEP, SIMPLE, and Individual 401(k) plans. Read ahead so you don't miss these deadlines:

SEP, SIMPLE, Individual 401(k) Employer Contribution (deadline date of March 15)

Employer contributions for employer-sponsored plans are due by the employer’s tax return due date plus extensions.  For corporations the deadline to file their corporate tax returns is March 15th.  If the employer does not file for an extension, March 15 is the deadline to make the employer contribution for their employer-sponsored plan. Here's the breakdown below:

SEP Establishment and Contributions

Simplified Employee Pension Plan contributions are due by the employer’s tax return due date plus extensions, only if you file for one. Your tax return due date depends on the type of entity, as shown below.

Type of Entity

Tax Return Due Date

Extension Date

Sole proprietor (Schedule C)

April 18

October 15

Partnership

April 18

September 15

Corporation

March 15

September 15

 

SEPs are attractive for employers who have not determined whether they will be able to make a contribution for the year.  With a SEP, you may wait until your tax return due date (plus extension) to decide whether to contribute. Even better, you may open a SEP Plan up until the tax return due date—including extensions. For more information about SEPs, read IRS Publication 560.

 

SIMPLE Employer Contributions

SIMPLE Plans require the employer to contribute every plan year. The employer may match employee contributions or may contribute a specific percentage or dollar amount.* This mandatory employer contribution must be paid by the employer’s tax return due date plus extensions, as shown below. 

Type of Entity    

Tax Return Due Date

Extension Date

Sole proprietor (Schedule C)

April 18

October 15

Partnership

April 18

September 15

Corporation

March 15

September 15

 

*The employer must notify eligible participants of the type and amount of contribution to be made no later than 60 days before the start of the plan year.

Individual 401(k) Contributions

Employee contributions to Individual 401(k) Plans are called “elective deferrals.” For participants who are W-2 employees, elective deferrals must be deposited into the participant’s Individual 401(k) account no later than seven business days after the amount has been deducted from the paycheck. Employer contributions, such as a profit sharing contribution, must be deposited by the employer’s tax return due date plus extensions as shown below.

Type of Entity    

Tax Return Due Date

Extension Date

Sole proprietor (Schedule C)

April 18

October 15

Partnership

April 18

September 15

Corporation

March 15

September 15

 

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