As 2015 comes to a close, our administration department
would like to thank you for your continued partnership and remind you of the important
deadlines for processing your payroll contributions and distributions.
Here are a few important dates to keep in mind to ensure
your last payroll files of 2015 are processed in time to reflect on the
December 31, 2015 valuation. Please have electronic information to us by
December 24, 2015. The dollars for these contributions must be received at the
investment company prior to December 29, 2015. If we ACH the money for your
account, we need to receive your file by Noon Central Time on December 24, 2015.
When submitting your final payroll file of 2015, please take
note of the pay period end date. It’s very possible it could reflect a January
2016 date, as not all pay schedules will end on 12/31/2015. If you notice a 2016
end date but would like your contributions processed in 2015, please feel free
to contact us prior to submitting the file and we will be more than happy to
modify that date to ensure your file is processed in the correct plan year.
Bonus payroll files are just as important and require the
same amount of attention as a regular payroll. Please contact us so we can open
additional pay schedules and assist you in getting these files uploaded & processed
in a timely manner.
We have reached that time of year that you may hear the
phrase ‘due to end of the year cut offs’ on rare occasion (or every time you
ask a question) regarding your distribution or loan.
Because we are given deadlines or cut off dates for
services, we must pass some of those cut offs on to our valued customers. During this busy time of year it would be
easy to wait until the last minute, or think I will do that later, but don’t
forget to submit your distribution and loan requests at your earliest
convenience.
Your dedicated Distribution Transaction Support Associates –
here at Alliance Benefit Group will continue to process through the end of the
year into the New Year but to ensure the distribution is reported in the 2015
calendar year ‘due to end of the year cut offs’ the following deadline for the
receipt of any distribution or loan form is December 22, 2015. In addition, all
applicable contributions and loan payments need to have been received and
processed before these can be processed. Distribution forms and loan
applications received after December 22, 2015 may not be processed until 2015.
Here are some other helpful tips to safeguard meeting the deadline or
cutoff date:
o
Send forms in soon
o
Use email, fax, or web/paperless submission (if
available/plan allows) for quicker results
o
Make sure forms are complete, fill in every
blank and have all signatures in place
o
Forms should be legible
o
Include detailed delivery instructions
Required Minimum Distributions (RMD)—RMD distributions also must
be processed by December 22, 2015 unless it is the first one in which the
required beginning date will be April 1, 2016.
·
RMD letters were mailed out to only those
required to take an RMD for 2016. We’ve asked each Plan Sponsor to review a
report to verify we have accurate ownership and plan status information in
order to accurately determine who is required to take a distribution. For most
plans, a participant is required to take an RMD if they have attained age 70 ½
and are a 5% owner or are an in-active (terminated) participant. Please contact
your dedicated service team right away if you have any questions on who is required
to take this distribution or if you would like confirmation that all required
distributions have been processed for your plan.
·
We will send another report in January to
capture any additional participants that became in-active (terminated) in 2015
and will be required to take their RMD by April 1, 2016.
·
Please note that the participant will incur a
50% excise tax on the required distribution if the distribution is not
processed by the applicable deadline. Accurate information is extremely
important in order to identify those required to take a distribution for 2015.
·
In order to ensure that an RMD is not missed for
future years, Alliance Benefit Group will also set up an annual recurring
Required Minimum Distribution that will occur each year until the account
balance is at zero.
·
Participants may call our Participant Call
center at 1-800-495-4015 to make changes to the timing of this distribution or
the taxes withheld at any time.
As this year ends, we think about all we are grateful for.
Our relationship with you is one thing we treasure. Thank you for the
opportunity to serve you. We wish you a happy holiday season and much success
in the New Year.
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