Tax Day extended; Remove excess salary deferrals by April 15; File Form 5500-EZ and Form 5310 electronically
Internal Revenue Service (IRS) sent this bulletin at 04/08/2021 11:32 AM EDT
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Tax Day Extension and IRA Contributions The IRS extended the 2020 federal income tax filing and payment deadline for all individuals to May 17, 2021. Individuals now have until May 17, 2021, to file their Form 1040 returns and make contributions to their IRAs for 2020. IRS Tax Relief for Winter Storm Victims Following disaster declarations issued by the Federal Emergency Management Agency, the IRS announced tax relief for victims of severe winter storms in Texas, Oklahoma and Louisiana. Affected individuals now have until June 15, 2021, to file their Form 1040 returns and make contributions to their IRAs for 2020. For more information on the extended due dates for various individual and business tax returns, including the beginning date of the disaster relief, see: As part of this relief, Form 5500 series returns that were required to be filed on or after the winter storms beginning date are postponed through June 15, 2021. Remove Excess Salary Deferrals by April 15, 2021 The total of all salary deferrals a participant makes to various retirement plans – including 401(k), 403(b), SARSEP and SIMPLE IRA plans – is limited to $19,500 (plus an additional $6,500 if age 50 or over) for 2020. If an individual defers more than this limit for 2020, the excess deferral amount plus earnings must be distributed by April 15, 2021. Excess salary deferrals not withdrawn by April 15 are taxable in 2020 and again when withdrawn. The date to remove excess salary deferrals has not been extended. Individuals who made salary deferral contributions to two or more retirement plans in 2020 may be most at risk for exceeding the deferral limit. Use our Interactive Tax Assistant to help determine how to correct excess salary deferrals. File 2020 Form 5500-EZ Electronically Using EFAST2 Beginning January 1, 2021, a one-participant plan or a foreign plan required to file an annual return must file Form 5500-EZ: All plan sponsors are encouraged to file their 2020 Form 5500-EZ electronically. It’s safe, easy to complete, and you have an immediate record that the return was filed. If a Form 5500-EZ filer is subject to IRS e-filing requirements (see Mandatory Electronic Filing), they’re required to file the Form 5500-EZ electronically using EFAST2. If a filer fails to file Form 5500-EZ electronically when required to do so, they’re deemed to have failed to file the return. Beginning January 1, 2021, a one-participant plan or a foreign plan can no longer file a Form 5500-SF in place of Form 5500-EZ. Information on the Form 5500-EZ filed using the EFAST2 filing system will not be available to the public on the DOL website. Form 5310 Electronic Submission The IRS is revising Form 5310, Application for Determination for Terminating Plan, and its instructions, to be submitted electronically. Beginning April 16, 2021, applications for terminating plans on Form 5310 may be submitted electronically online at www.Pay.gov. The IRS will continue to accept paper versions of Form 5310 through July 31, 2021. You’ll receive a confirmation e-mail (acknowledgement) after you submit your Form 5310 application through Pay.gov. The IRS won’t mail a separate acknowledgement letter for Pay.gov submissions. Pay.gov will accept one additional document file of up to 15MB. Remove any items over the 15MB limit before you submit. Contact IRS Customer Accounts Services at 877-829-5500 for help on how to submit the removed items. The user fee for Form 5310 submitted on or after January 4, 2021 is $3,500 (or $4,000 for multiple employer plans), if the plan does not qualify for the zero-dollar user fee in Notice 2017-1. Applicants must pay these user fees through Pay.gov using a bank account, credit or debit card. See Revenue Procedure 2021-4 for the latest procedures and user fees for determination letter requests. Find answers to many retirement plan questions on IRS.gov at Retirement Plans and Retirement Plan Forms and Publications. If you need help with an account-specific question, basic information about retirement plan forms or the status of pending applications, call our Customer Account Services at 877-829-5500. If you know someone who might want to subscribe to this mailing list, please forward this message to them so they can subscribe. This message was distributed automatically from the mailing list Employee Plans News. Please do not reply to this message. |
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