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Your 401(k) Adoption Deadlines: 2021 and 2022

Your 401(k) Adoption Deadlines: 2021 and 2022

February 04, 2021
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At the end of 2019, the SECURE Act became law. The product of a bipartisan effort to make retirement savings more accessible, it was the largest piece of retirement reform legislation since the passage of the Pension Protection Act of 2006. Since then, we have received lots of questions about new 401(k) adoption deadlines from small business owners here in Maine. Below, we have compiled some of the most important deadlines to keep in mind for 2021 and 2022.

October 1, 2021

For NEW 401(k) plans: Deadline to adopt a safe harbor 401(k) plan for 2021.

December 2, 2021

For EXISTING 401(k) plans: Deadline to adopt the amendment to convert an existing 401(k) plan to a 3% nonelective safe harbor plan for 2021.

March 15, 2022

For NEW 401(k) plans*: Dead for S-Corps and partnerships (or LLCs taxed as either) to adopt a traditional 401(k) plan for 2021 (assuming no tax return extension)

April 15, 2022

For NEW 401(k) plans*: Deadline for C-Corps and sole proprietorships (or LLCs taxed as either) to adopt a traditional 401(k) plan for 2021 (assuming no tax return extension)

September 15, 2022

For NEW 401(k) plans*: Deadline for S-Corps and partnerships (or LLCs taxed as either) to adopt a traditional 401(k) plan for 2021 (assuming a tax return extension is filed)

October 15, 2022

For NEW 401(k) plans*: Deadline for C-Corps and sole proprietorships (or LLCs taxed as either) to adopt a traditional 401(k) plan for 2021 (assuming no tax return extension is filed)

December 31, 2022

For EXISTING 401(k) plans*: Deadline to adopt the amendment to convert a traditional 401(k) to a 4% nonelective safe harbor plan for 2021.

*For retroactive plan changes, note that company contributions can be made for the prior year; however, salary deferrals cannot be made retroactively.

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