2018 Winter-AT.ai

Connection

Winter 2018

Required Minimum Distribution

Do you have questions on when a Required Minimum Distribution (RMD) needs to be processed? Don’t worry. You’re not alone. Under Internal Revenue Service (IRS) regulations, a participant must begin taking RMDs no later than April 1 following the calendar year in which he/she reaches age 70½. This is known as the required beginning date. If a participant is a 5 percent owner or has terminated employment, then the first RMD must be taken by this date.

Participants must take their second RMD by

December 31 of the calendar year following the year they attain age 70½. For example, if the first RMD is due April 1, 2018, and the participant turned 70½ in 2017, he/she must take the second RMD no later than December 31, 2018. Note: participants can take the first RMD in the year prior. All subsequent distributions must be taken by December 31 of each year. If a participant is age 70½, not a 5 percent owner, and still working for the company sponsored retirement plan, he/she may defer the RMD until he/she terminates from the company. The first RMD would need to be processed by April 1 the year following termination, and the second RMD would need to be processed by December 31 of the year following termination of employment.

If a participant has multiple retirement accounts, we suggest contacting a tax advisor.

As a Reminder... For 2018, the maximum contribution limit is $18,500, plus an additional $6,000 for those over the age of 50.

895 Main Street | Dubuque, IA 52001 | 800.548.2995 | www.americantrustretirement.com

Year-end Compliance Testing

This year, we are implementing new deadlines for the completion (in good order) of your census package and census year-end information based on your plan setup.

Non-Safe Harbor Plans:

Funding Deadlines

January 31, 2018

The funding deadlines for 12/31 year-end plans are as follows:

Safe Harbor Plans: The deadlines vary depending on your year-end contribution intentions. January 31, 2018: if you are planning on making a year-end contribution or your plan requires a year-end true-up, and you are not planning on filing an extension

Extended Due Date

Entity Type Return

Due Date

C-Corporation *

1120

April 15 (3½ months following tax year-end)

October 15 (9½ months following tax year-end)

S-Corporation 1120-S

March 15 (2½ months following tax year-end)

September 15 (8½ months following tax year-end)

April 30, 2018: if you intend to file an extension with the IRS

Partnership

1065

March 15 (2½ months following tax year-end)

September 15 (8½ months following tax year-end)

April 30, 2018: if your plan’s contributions for the plan year have already been submitted

* C-Corporations with a 6/30 fiscal year-end will continue to have a 9/15 due date until tax years beginning after 12/31/25 at which point the deadline will be moved back to 10/15.

The Year-end Census Procedures guide details how to identify your final contributions for the plan year, access your census information from the website, and securely return the census information to us.

Online Enrollment With online enrollment, you no longer need to complete paper forms for enrollment, and contribution and beneficiary changes. For more information, click here.

Click here for a video with instructions on how to complete the census material.

If you are interested in learning more about online enrollment, contact your relationship manager.

If you have any questions, contact your relationship manager at 800.548.2995.

YOU ASKED. WE ANSWERED. How do I make investment changes online? We have a helpful guide that shows participants how to make changes to investment elections, move money, and rebalance. We make it easy! Click here for a copy of this step-by-step guide.

Our Participant Services team is always happy to answer any questions. Just call 800.548.2994.

Navigating Your Path to Retirement

Our clients and participants utilize the ATBlueprint ® to aid them in retirement readiness. It is a powerful process that helps a participant draw a path to retirement. The ATBlueprint helps shows participants how to improve their retirement outlook by saving more now and/or reducing income needed during retirement. Small changes that a participant makes today, can lead to being better prepared for retirement in the future! Click here for information on How to Read Your ATBlueprint.

Customizing an ATBlueprint creates a better picture of a participant’s future progress projection. Participants can add information on outside assets and make modifications to individual retirement demographics, including retirement and Social Security age, retirement goal (income need), Social Security, spousal Social Security, and years in retirement. Click here for more information on how to customize the ATBlueprint.

Having a foundation today in retirement savings will assist participants in meeting retirement goals in the future. Encourage your participants to take the time to review their ATBlueprint today!

Participants can contact us at 800.548.2994 or email retirementexpert@americantrust.com.

Our Education Team is Ready to Serve you!

Did you know we are often requested to come out to our plans to do group meetings that challenge, encourage, and educate employees about their 401(k) participation? Many times, we have found that employees will contribute more if they understand why it is important, how the plan works, and what the different investment options are.

Set up a “Lunch and Learn” during your lunch break! We can come to your office and present on different topics ranging from Retirement Planning 101 to Understanding your Online Account. We are very flexible with times, dates, topics, and can tailor to you and your employees. Talk to your relationship manager to request an Education Guide Brochure.

This is a free service offered as part of our plan services, so use our knowledge and resources to help your employees today!

QUARTERLY CALENDAR

January • If you are a non-Safe Harbor plan, your completed census package and year end information request are due by January 31 • If you are a Safe Harbor plan and are planning on making a year-end contribution and will not be filing an extension, your census package and year end information request are due by January 31 March • If your entity is an S-Corporation or a Partnership, your year-end employer contribution is due by March 15, if no extension is filed

April • If you are a C-Corporation, your year end employer contribution is due by April 15, if no extension is filed • If you are a Safe Harbor plan, and you intend on filing an extension for your year end contribution, your census package and year end information request are due by April 30 • If you are a Safe Harbor plan and your employer contributions have been made during the plan year, your census and year end information request are due by April 30

• ADP/ACP corrections are required to be distributed from your account by March 15, if applicable

WEB RESOURCES

Employee Benefits Institute of America, Inc. www.ebia.com Employee Benefit Research Institute www.ebri.org American Trust Retirement www.americantrustretirement.com

PLANSPONSOR Magazine www.plansponsor.com BenefitsLink www.benefitslink.com Plan Sponsor Council of America www.psca.org

Internal Revenue Service, Employee Plans www.irs.gov/ep Department of Labor, Employee Benefits Security Administration www.dol.gov/ebsa 401(k) Help Center www.401khelpcenter.com