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Timely Tips: Deadline Dates for Small Business Owners

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Our new series of timely tips are a great way to keep up-do-date with retirement deadlines that are important to self-directed IRA holders. In this article 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 Establishment and Contribution

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

Type of Entity

Tax return due

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 account up until the tax return due date—including extensions. The maximum SEP contribution for the 2015 tax year 2015 is the smaller of $53,000 or 25% of each eligible employee’s compensation. 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

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) accounts 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

Extension date

Sole proprietor (Schedule C)

April 18

October 15

Partnership

April 18

September 15

Corporation

March 15

September 15

 

Please subscribe to our email updates to keep up-to-date with self-directed IRA deadline dates. You can do so by filling out you email address in the form at the top right of this page. For additional educational resources, please visit our Entrust Learning Center today. Click below to take a tour! 

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